Causal Factor, Values and its usage
Hi,
I am trying to understand few aspects related to causal factors. I understand the concept of local and global causals and it's configuration. What I am not able to understand is how the value is provided for causal data is understood by analytical engine to factor in the effect and adjust the forecast.
For example:
We have a local causal called ITEM_PRICE which by name we can understand it holds price of item at location on specific time period. If we include value of 80 it means it is 80 units of currency.
Similarly we have some other causals such as summer, winter, t1..etc which are having values as 1 or 0. what does these values signify here, what units it will treat them as and how it differentiates between one above and this one. I mean number in isolation may mean just a numberic value, but when associated with specific unit, it explains what it means. Does the unit factor is important at all or not? If not how the numbers entered in causals are treated and used.
I am trying to understand few aspects related to causal factors. I understand the concept of local and global causals and it's configuration. What I am not able to understand is how the value is provided for causal data is understood by analytical engine to factor in the effect and adjust the forecast.
For example:
We have a local causal called ITEM_PRICE which by name we can understand it holds price of item at location on specific time period. If we include value of 80 it means it is 80 units of currency.
Similarly we have some other causals such as summer, winter, t1..etc which are having values as 1 or 0. what does these values signify here, what units it will treat them as and how it differentiates between one above and this one. I mean number in isolation may mean just a numberic value, but when associated with specific unit, it explains what it means. Does the unit factor is important at all or not? If not how the numbers entered in causals are treated and used.
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