How to Decide Between Regression and Time Series Models for “Forecasting”?
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Hi everyone,<\/p>\n
I\u2019m trying to understand intuitively when it makes sense to use a time series model like SARIMAX versus a simpler approach like linear regression, especially in cases of weak autocorrelation.<\/p>\n
For example, in wind power generation forecasting, energy output mainly depends on wind speed and direction. The past energy output (e.g., 30 minutes ago) has little direct influence. While autocorrelation might appear high, it\u2019s largely driven by the inputs, if it\u2019s windy now, it was probably windy 30 minutes ago.<\/p>\n
So my question is: how can you tell, just by looking at a \u201cforecasting\u201d problem, whether a time series model is necessary, or if a regression on relevant predictors is sufficient?<\/p>\n
From what I’ve seen online the common consensus is to try everything and go with what works best.<\/p>\n
Thanks \ud83d\ude42<\/p>\n<\/p><\/div>\n
submitted by \/u\/Emergency-Agreeable <\/a>
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