00:01
An averaging technique may not be appropriate for forecasting in this scenario due to several reasons.
00:07
Let me lay them out.
00:09
One could be a lack of consideration for underlying trends or patterns.
00:26
Averaging techniques assume that the historical data points are independent and identically distributed, but in many real -world scenarios, including air travel, there can be underlying trends or patterns that affect the data.
00:37
Averaging the past values might not capture these trends accurately, leading to inaccurate forecasts.
00:52
Averaging techniques treat all historical data points equally regardless of when they occurred.
00:58
This means that recent changes or developments may not receive sufficient weight in the forecast.
01:04
In the case of air travel, there could be seasonality, external factors like events or holidays, or changing customer preferences that impact the demand for flights...