What is the minimum amount of data needed to generate an accurate forecast?
1 Like
In order to generate a accurate forecast , The amount of data is not the only factor that should be taken into account, But the quality of data. If the data is smooth , free from errors i.e outliers then 2 years of data is enough to catch all the patterns in the time series , but I if the data has too much noise then ,3 to 4 years of data is recommended so we can have some degree of relation between data points after transforming the data into smoother/noise free format. All in all It is highly commended to have at least 2 or 3 years of data for any time series related jobs.
1 Like