Description: The forecasting horizon refers to the period of time during which forecasts are made in the realm of predictive analysis. This concept is fundamental for planning and decision-making across various disciplines, as it establishes the time frame in which certain events or trends are expected to materialize. The duration of the forecasting horizon can vary significantly depending on the context and the nature of the data analyzed. For example, in finance, a forecasting horizon may span from days to years, while in meteorology, it can range from hours to weeks. The accuracy of forecasts tends to decrease as the horizon extends, implying that short-term forecasts are usually more reliable than long-term ones. Additionally, the forecasting horizon influences the selection of models and analytical techniques, as different methods may be more suitable for different time scales. In summary, the forecasting horizon is a key element in predictive analysis, as it defines the time frame for evaluating trends and anticipating future events.
