AI engineering glossary · Time series recsys
What is forecast reconciliation?
Forecast reconciliation: Adjusting forecasts made at different levels of a hierarchy so that they add up exactly, while using information from all levels. Methods include bottom-up, top-down and optimal combination approaches such as MinT.
Forecast reconciliation: an example
If city forecasts sum to 1,020 but the national forecast is 1,000, reconciliation moves both toward a consistent total.
Related terms
More Time series recsys terms
- Forecasting
- Fourier terms
- Funk SVD
- GARCH model
- Granger causality
- GRU4Rec
- Hierarchical forecasting
- Holiday effect
Where you learn it
Forecast reconciliation is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.