CODEWITHSUNDEEP
rgraphmodelforecasting
Shery
Shery

Reputation: 1892

How to interpret Forecasting Models in R

I created a forecasting model using stlf(), auto.arima(), HoltWinters() methods in R and I get something like this:

enter image description here

What does the colouring mean i.e. what does the grey area and purplish area indicate?

Upvotes: 1

Views: 3254

Answers (1)

Miha Trošt
Miha Trošt

Reputation: 2022

To put it simple, it means that there is a 80 or 95 % chance that your future values will lie in the respectful shaded areas. On the other hand it also means that your point forecasts (dark blue line) have 0 % probability of realization.

Upvotes: 2

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