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🎓 Lecture 16 - Forecasting and its intervalsSource
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🔮Lecture 16 - Forecasting and its intervals

🚦 Status🌟 Mastered
🧠 Mastery🦅 Adept
📅 Last Review7 Dec 2025

🎯KEY TAKEAWAYS

  1. A confidence interval is about the average. A prediction interval is about the next single case. The customer is always asking for the second.
  2. No amount of data makes one vessel, one batch or one delivery predictable beyond its own scatter.
  3. Forecasts get worse at the edges of what you have seen. Say so on the chart.
  4. This is 💎 An interval is more honest than a point with the working shown.

⚡QUICK JOTS

  • a forecast is a prediction plus how wrong it usually is. without the second half it is a wish
  • TWO intervals and I have been mixing them up all year
  • confidence interval: where the average is
  • prediction interval: where the next one will land. always wider
  • more data narrows the first. it does not narrow the second below the noise in the thing itself
  • further from the middle of your data → both get wider. the line pivots
  • finished cleaning the port data this afternoon, four days late. this lecture is about exactly what I do next

☑️HOMEWORK

📝LECTURE NOTES