Question

What are some of the shortcomings and difficulties associated with the regression model Disney made for its forecast for Frozen? If you worked for Disney Studios, how might you improve the forecasting model? What other factors, besides gross box office, might you take into consideration when developing a forecast for home video units?

Answer 1

Explanation:

Regression towards the mean is a condition in statistics that is not purely based on factual data rather it involves such events that the results generate on the basis of a chance. So one can entirely not predict with certainty the results in regression towards mean.

Forecasting model can be improved by taking more historical data year wise and month wise and also keeping in view the trends going on in the industry