Firms’ subjective uncertainty and forecast errors: survey evidence from Japan

2021 ◽  
pp. 1-4
Author(s):  
Masayuki Morikawa
2011 ◽  
Vol 26 (4) ◽  
pp. 579-585 ◽  
Author(s):  
Charles R. Sampson ◽  
John Kaplan ◽  
John A. Knaff ◽  
Mark DeMaria ◽  
Chris A. Sisko

Abstract Rapid intensification (RI) is difficult to forecast, but some progress has been made in developing probabilistic guidance for predicting these events. One such method is the RI index. The RI index is a probabilistic text product available to National Hurricane Center (NHC) forecasters in real time. The RI index gives the probabilities of three intensification rates [25, 30, and 35 kt (24 h)−1; or 12.9, 15.4, and 18.0 m s−1 (24 h)−1] for the 24-h period commencing at the initial forecast time. In this study the authors attempt to develop a deterministic intensity forecast aid from the RI index and, then, implement it as part of a consensus intensity forecast (arithmetic mean of several deterministic intensity forecasts used in operations) that has been shown to generally have lower mean forecast errors than any of its members. The RI aid is constructed using the highest available RI index intensification rate available for probabilities at or above a given probability (i.e., a probability threshold). Results indicate that the higher the probability threshold is, the better the RI aid performs. The RI aid appears to outperform the consensus aids at about the 50% probability threshold. The RI aid also improves forecast errors of operational consensus aids starting with a probability threshold of 30% and reduces negative biases in the forecasts. The authors suggest a 40% threshold for producing the RI aid initially. The 40% threshold is available for approximately 8% of all verifying forecasts, produces approximately 4% reduction in mean forecast errors for the intensity consensus aids, and corrects the negative biases by approximately 15%–20%. In operations, the threshold could be moved up to maximize gains in skill (reducing availability) or moved down to maximize availability (reducing gains in skill).


2021 ◽  
Vol 12 (1) ◽  
Author(s):  
H. Kim ◽  
Y. G. Ham ◽  
Y. S. Joo ◽  
S. W. Son

AbstractProducing accurate weather prediction beyond two weeks is an urgent challenge due to its ever-increasing socioeconomic value. The Madden-Julian Oscillation (MJO), a planetary-scale tropical convective system, serves as a primary source of global subseasonal (i.e., targeting three to four weeks) predictability. During the past decades, operational forecasting systems have improved substantially, while the MJO prediction skill has not yet reached its potential predictability, partly due to the systematic errors caused by imperfect numerical models. Here, to improve the MJO prediction skill, we blend the state-of-the-art dynamical forecasts and observations with a Deep Learning bias correction method. With Deep Learning bias correction, multi-model forecast errors in MJO amplitude and phase averaged over four weeks are significantly reduced by about 90% and 77%, respectively. Most models show the greatest improvement for MJO events starting from the Indian Ocean and crossing the Maritime Continent.


Author(s):  
Bin He ◽  
Zifeng Yu ◽  
Yan Tan ◽  
Yan Shen ◽  
Yingjun Chen

2021 ◽  
Vol 11 (15) ◽  
pp. 6787
Author(s):  
Jože M. Rožanec ◽  
Blaž Kažič ◽  
Maja Škrjanc ◽  
Blaž Fortuna ◽  
Dunja Mladenić

Demand forecasting is a crucial component of demand management, directly impacting manufacturing companies’ planning, revenues, and actors through the supply chain. We evaluate 21 baseline, statistical, and machine learning algorithms to forecast smooth and erratic demand on a real-world use case scenario. The products’ data were obtained from a European original equipment manufacturer targeting the global automotive industry market. Our research shows that global machine learning models achieve superior performance than local models. We show that forecast errors from global models can be constrained by pooling product data based on the past demand magnitude. We also propose a set of metrics and criteria for a comprehensive understanding of demand forecasting models’ performance.


2021 ◽  
pp. 1-13
Author(s):  
Tucker S. McElroy ◽  
Anindya Roy ◽  
James Livsey ◽  
Theresa Firestine ◽  
Ken Notis

The Transportation Services Index (TSI) lags two months from its release date due to source data availability, and it is desirable to publish a preliminary TSI that is advanced two months ahead. We model and forecast TSI with a co-integrated Vector Autoregression, also considering two explanatory series that do not have publication delay. Thus we are able to produce forecasts and nowcasts of the index, and we demonstrate that – during normal economic conditions – out-of-sample performance is within the scope expected by the forecast confidence intervals. We also examine the performance of the models at the onset of the COVID-19 pandemic, and the large forecast errors at this regime change are beyond the bounds indicated by our model. The practical ramifications of this methodology is discussed.


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