Economic Trend Index Forecasting Using Multiple Regression Model and Random Forest

Abstract

In this paper, we propose a prediction model that combines statistical methods with different prediction characteristics and machine learning methods in parallel. As a combining method, a multiple regression model and a random forest are used. Because using one method is considered as a risk, the risk is reduced by combining methods with different prediction characteristics. Furthermore, we select effective explanatory variables for economic trend index prediction and improve learning to improve prediction accuracy.