Regression Isn’t Always the King of Forecasting

Regression models are popular, but forecasting future demand requires more than fitting a straight line.

Why Regression Often Fails in Forecasting

• Assumes linear relationships
• Struggles with seasonality
• Requires stable residuals

Better Alternatives

• ARIMA and exponential smoothing
• Decomposition-based forecasting
• Ensemble forecasting methods

Modern forecasting tools combine multiple models instead of relying on a single regression.