Forecasting bed linen sales and seasonality trends for Mungo using fictional data (ARIMA forecasting)
The line plot is showing the observed values compared to the rolling forecast predictions. Overall, our forecasts align with the true values very well, showing an upward trend starts from the beginning of the year and captured the seasonality toward the end of the year.
Our model clearly captured bed linen sales seasonality. As we forecast further out into the future, it is natural for us to become less confident in our values. This is reflected by the confidence intervals generated by our model, which grow larger as we move further out into the future.