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Train, validation and test sets

Naive forcasting

take the last value and assume that the next value will be the same one, and this is called naive forecasting.

Fixed Partitioning

Roll forward Partitioning

We start with a short training period, and we gradually increase it, say by one day at a time, or by one week at a time. At each iteration, we train the model on a training period. And we use it to forecast the following day, or the following week, in the validation period.