Why I Prefer Probabilistic Forecasts — Hitting Time Probabilities | by Sarem Seitz | Dec, 2022
Point forecasts are good for making decisions. With probabilistic forecasts, you can also make the right ones.Photo by Aron Visuals on UnsplashIn Data Science, forecasting often involves creating the best possible model for predicting future events. Usually, the “best” model is one that minimizes a given error metric such as the Mean-Squared Error (MSE). The end result is then a list of values that depicts the predicted trajectory of the time-series. A statistician or econometrician would call this a point forecast.More…