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A forecasting comparison of classical and Bayesian methods for modelling logistic diffusion

✍ Scribed by Ronald Bewley; William E. Griffiths


Publisher
John Wiley and Sons
Year
2001
Tongue
English
Weight
164 KB
Volume
20
Category
Article
ISSN
0277-6693

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✦ Synopsis


Abstract

A Bayesian procedure for forecasting S‐shaped growth is introduced and compared to classical methods of estimation and prediction using three variants of the logistic functional form and annual times series of the diffusion of music compact discs in twelve countries. The Bayesian procedure was found not only to improve forecast accuracy, using the medians of the predictive densities as point forecasts, but also to produce intervals with a width and asymmetry more in accord with the outcomes than intervals from the classical alternative. While the analysis in this paper focuses on logistic growth, the problem is set up so that the methods are transportable to other characterizations of the growth process. Copyright Β© 2001 John Wiley & Sons, Ltd.


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