Combination Forecasting Method Based on IOWA Operator and Application

Abstract

The combination forecasting model based on induced ordered weighted averaging IOWA operators. First, individual forecasting model that has higher forecasting accuracy is chosen as a criterion. Then, the deviation of predictive values between other models and standard model is computed. The weights are given according to the mean value size of the absolute value sum of deviation in every individual forecasting model in every period. Finally, a new forecasting model is built in accordance with the weighted error sum of squares. And genetic algorithm is used to solve the optimal weights. Verified by an example, the improved combination forecasting method is better than the original combination forecasting method based on IOWA operator. Forecasting accuracy is improved effectively.