1 | Technical Analysis
1.1 The Business Case
For this company, it is crucial to have accurate forecasts of their variable of interest, which could be the weather, growth, sales, prices, demand, etc. In such a case, A.I. and Machine Learning are indispensable in delivering the results, insights, and strategy this company seeks.
1.2 Technical Evaluation
Our variable of interest is a multi-level function of various factors that are intertwined and interrelated. The priority is to understand and consider these causal factors in our technical analysis.
2 | Software Solution
2.1 The A.I. Software Solution
We build a 3-step Graphical User Interface (GUI) which allows us to:
- get and update the relevant data,
- estimate the model parameters, and
- visualize the best forecasts for our variable of interest.
2.2 Insight in Effect Sizes
By designing such a GUI, this company gains clear insight in the underlying factors that play a role and how large their respective effects are on the variable of interest.
3 | Implementation Strategy
3.1 Strategy
By understanding the interaction among causal factors that affect the variable of interest, Company C formulates a strategy that considers factors within its control and conditions that are outside its control.
3.2 Forecasting Outcome
The course of action is then to monitor the GUI and anticipate on potential changes in the underlying factors. By doing so, the company knows the future with a certain accuracy and is prepared for market changes and fluctuations.