What is AR forecasting?
Accounts receivable forecasting is one of the most important, and the most challenging, elements of a cash flow forecasting process for head office finance and treasury teams. It is the element of a company's cash flow forecast that estimates the amount of cash it is due to receive over a set period.
What is an AR 2 process?
An AR(1) autoregressive process is one in which the current value is based on the immediately preceding value, while an AR(2) process is one in which the current value is based on the previous two values. An AR(0) process is used for white noise and has no dependence between the terms.
What is an autoregressive forecasting model?
What is an autoregressive model? An autoregressive (AR) model forecasts future behavior based on past behavior data. This type of analysis is used when there is a correlation between the time series values and their preceding and succeeding values. Autoregressive modeling uses only past data to predict future behavior.