Forecasting inventory with trend and weekly seasonality?
This tests mapping a business problem to a statistical tool. A good answer names Holt-Winters, explains its level, trend, and seasonal components, and discusses additive vs. multiplicative seasonality.
This question tests your ability to map a business problem to a specific statistical model and justify the choice. A strong answer identifies the Holt-Winters method as a suitable baseline, then explains how its three components—level, trend, and seasonality—directly address the data's characteristics. You should also differentiate between additive and multiplicative seasonality, explaining why one might be better for demand data.
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- #analytics
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