Forecasting with the enhanced stepwise data adjustment regression method

Forecasting is one of the most pervasive elements of managerial decision-making. In many industries, it plays an important role in business and facilities planning. One technique used to develop forecasts is the ESDAR (Enhanced Stepwise Data Adjustment Regression) method for dealing with the response variables which are measurement data but not real values in this paper. It upgrades the concept for adding adjustment idea to the fitting process on regression by using the Unit Increment algorithm for calculating the more reliable base values and considering the periodic factor into forecasting values. This paper gives a brief outline of ESDAR method. The first half of the paper explains the concept and process, and the second half provides some examples for international telecommunication traffic loads forecasting to demonstrate its superiority.