4.6.3.2 Prediction Intervals

Prediction intervals for forecasting models specify upper and lower bounds on predictions for forecasting based on level of confidence. For example, for a prediction interval of 0.95 with a lower bound of 25 units and an upper bound of 65 units, you are 95% confident that product ABC will sell between 25 and 65 units on a randomly selected day.

The prediction_interval option is included for the ML_PREDICT_TABLE routine, which specifies a level of confidence. Predictions provide three outputs corresponding to each endogenous variable: the forecasted value, a lower bound, and an upper bound.

For the prediction_interval option:

• The default value is 0.95.

• The data type for this value must be FLOAT.

• The value must be greater than 0 and less than 1.0.

What's Next

• Learn how to Train a Forecasting Model.