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Forecast combinations have been widely applied in the last few decades to improve forecasting. Estimating optimal weights that can outperform simple averages is not always an easy task. In recent years, the idea of using time series…

Methodology · Statistics 2021-10-22 Yanfei Kang , Wei Cao , Fotios Petropoulos , Feng Li

This paper presents a formal framework and proposes algorithms to extend forecast reconciliation to discrete-valued data to extend forecast reconciliation to discrete-valued data, including low counts. A novel method is introduced based on…

Methodology · Statistics 2024-04-16 Bohan Zhang , Anastasios Panagiotelis , Yanfei Kang

Model selection has been proven an effective strategy for improving accuracy in time series forecasting applications. However, when dealing with hierarchical time series, apart from selecting the most appropriate forecasting model,…

Machine Learning · Computer Science 2020-10-30 Mahdi Abolghasemi , Rob J Hyndman , Evangelos Spiliotis , Christoph Bergmeir

Forecast reconciliation adjusts independently generated forecasts so that they satisfy some known constraints. While probabilistic forecast reconciliation is well established for linear constraints, some practical forecasting problems…

Methodology · Statistics 2026-04-30 Anubhab Biswas , Lorenzo Zambon , Lorenzo Nespoli , Giorgio Corani

Multivariate time series forecasting with hierarchical structure is widely used in real-world applications, e.g., sales predictions for the geographical hierarchy formed by cities, states, and countries. The hierarchical time series (HTS)…

Machine Learning · Computer Science 2023-10-10 Fan Zhou , Chen Pan , Lintao Ma , Yu Liu , Shiyu Wang , James Zhang , Xinxin Zhu , Xuanwei Hu , Yunhua Hu , Yangfei Zheng , Lei Lei , Yun Hu

Time series forecasting plays an increasingly important role in modern business decisions. In today's data-rich environment, people often aim to choose the optimal forecasting model for their data. However, identifying the optimal model…

Applications · Statistics 2021-12-17 Xixi Li , Fotios Petropoulos , Yanfei Kang

Many real-life applications involve simultaneously forecasting multiple time series that are hierarchically related via aggregation or disaggregation operations. For instance, commercial organizations often want to forecast inventories…

Machine Learning · Computer Science 2021-02-26 Xing Han , Sambarta Dasgupta , Joydeep Ghosh

Time series forecasting serves as an essential tool for many real-world applications, supporting tasks such as resource optimization and decision-making. Despite significant architectural advancements, most modern models still treat…

Machine Learning · Computer Science 2026-05-12 Sheng Pan , Ming Jin , Bo Du , Shirui Pan

Aggregated curves are common structures in economics and finance, and the most prominent examples are supply and demand curves. In this study, we exploit the fact that all aggregated curves have an intrinsic hierarchical structure, and thus…

Applications · Statistics 2023-06-12 Paul Ghelasi , Florian Ziel

We propose to estimate the weight matrix used for forecast reconciliation as parameters in a general linear model in order to quantify its uncertainty. This implies that forecast reconciliation can be formulated as an orthogonal projection…

Methodology · Statistics 2024-02-12 Jan Kloppenborg Møller , Peter Nystrup , Poul G. Hjorth , Henrik Madsen

Forecast combination -- the aggregation of individual forecasts from multiple experts or models -- is a proven approach to economic forecasting. To date, research on economic forecasting has concentrated on local combination methods, which…

Econometrics · Economics 2024-03-12 Ryan Thompson , Yilin Qian , Andrey L. Vasnev

We propose a novel approach to the problem of clustering hierarchically aggregated time-series data, which has remained an understudied problem though it has several commercial applications. We first group time series at each aggregated…

Machine Learning · Computer Science 2022-05-30 Xing Han , Tongzheng Ren , Jing Hu , Joydeep Ghosh , Nhat Ho

We present a novel approach for reconciling hierarchical forecasts, based on Bayes rule. We define a prior distribution for the bottom time series of the hierarchy, based on the bottom base forecasts. Then we update their distribution via…

Applications · Statistics 2021-06-07 Giorgio Corani , Dario Azzimonti , João P. S. C. Augusto , Marco Zaffalon

We introduce a framework to dynamically combine heterogeneous models called \texttt{DYCHEM}, which forecasts a set of time series that are related through an aggregation hierarchy. Different types of forecasting models can be employed as…

Machine Learning · Computer Science 2023-01-18 Xing Han , Jing Hu , Joydeep Ghosh

Forecast reconciliation, an ex-post technique applied to forecasts that must satisfy constraints, has been a prominent topic in the forecasting literature over the past two decades. Recently, several efforts have sought to extend…

Machine Learning · Computer Science 2026-01-15 Lorenzo Nespoli , Anubhab Biswas , Roberto Rocchetta , Vasco Medici

Ads demand forecasting for Walmart's ad products plays a critical role in enabling effective resource planning, allocation, and management of ads performance. In this paper, we introduce a comprehensive demand forecasting system that…

Machine Learning · Computer Science 2024-12-20 Zhengchao Yang , Mithun Ghosh , Anish Saha , Dong Xu , Konstantin Shmakov , Kuang-chih Lee

Forecast reconciliation is considered an effective method to achieve coherence (within a forecast hierarchy) and to improve forecast quality. However, the value of reconciled forecasts in downstream decision-making tasks has been mostly…

Machine Learning · Statistics 2025-12-02 Honglin Wen , Pierre Pinson

Time series forecasts of different temporal granularity are widely used in real-world applications, e.g., sales prediction in days and weeks for making different inventory plans. However, these tasks are usually solved separately without…

Machine Learning · Computer Science 2024-06-21 Fan Zhou , Chen Pan , Lintao Ma , Yu Liu , James Zhang , Jun Zhou , Hongyuan Mei , Weitao Lin , Zi Zhuang , Wenxin Ning , Yunhua Hu , Siqiao Xue

In a sequential regression setting, a decision-maker may be primarily concerned with whether the future observation will increase or decrease compared to the current one, rather than the actual value of the future observation. In this…

Machine Learning · Computer Science 2023-06-09 Youngseog Chung , Aaron Rumack , Chirag Gupta

Conformal prediction offers a practical framework for distribution-free uncertainty quantification, providing finite-sample coverage guarantees under relatively mild assumptions on data exchangeability. However, these assumptions cease to…

Machine Learning · Statistics 2024-06-25 Derck W. E. Prinzhorn , Thijmen Nijdam , Putri A. van der Linden , Alexander Timans