Causal Forecasting

The Residual Plot chart is used to determine the pattern of the residuals or the difference between the observed and predicted values. It indicates whether the residuals are randomly scattered around zero or if there is a specific pattern.

The Scatter Plot chart is used to determine the relationship between two variables. It indicates the pattern or trend between the variables, such as whether they have a positive or negative correlation or if they are unrelated.

The table is used to determine the correlation between the variables A, B, C, D, and E. It indicates the strength and direction of the correlation between each pair of variables.

<p>To correct for the issue, further analysis should be conducted to identify the cause of the low or negative correlation. This may involve checking for data errors, outliers, or considering additional variables that could affect the correlation.</p> Signup and view all the answers

<p>The purpose of forecasting monthly sales is to estimate future sales based on historical data and other relevant factors. It helps businesses in planning production, inventory management, and budgeting.</p> Signup and view all the answers