If you have been presented with multiple variables (10+), some qualitative, some quantitative and the goal is to identify the top independent and dependent variables to develop a forecast model - what statistical tests would you run?

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You probably need to quantify the qualitative variables first. Then it depends on what test gives you the best accuracy. Split the data into training and test, and try different models.

To do this you will need to have a decent understanding of statistical fundamental rules.

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Thanks, will give this a shot. There’s a lot of history to the data so biases can be mitigated by expanding the sample data.

Shap values

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Thx, can this be done without python?

Sounds like your data is probably tabular. XGBoost then just take a look at the SHAP values.

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Try running a regression to see which independent variables have pvalues lower than .05 and use them to build other forecast models or try using PCA to see which top variables explain the highest variance among your data and use them to build further models

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Any thoughts on whether regression or PCA is superior/ inferior compared to other suggestions (eg, shap, xgboost) for my use case?

How do you define top?

Why are you forecasting with an undetermined dependent variable?

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There’s dozens of algos you can try, but your dep varible needs to be driven by a clear biz question or objective. Otherwise it’s just DS for DS sake and the ppl funding us hate that.

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What type of forecast model ? Regression ? Something else ?

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Surprised there is no time element to this if you are looking at discounts of products. Could be a high degree of seasonality !

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You mentioned forecasting, are these variables cross sectional or time series data? What’s your dependent variable?

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Cross sectional, dependent var = sku quantity consumed

CART

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Always start from understanding what you are trying to predict, and the general structure of your data.

It sounds like you are trying to predict volume on each of ~100 SKUs for a set of customers? How many customers? What time horizon are you trying to predict?

Do your candidate variables describe the SKUs, the customers, the order history or all of the above? This will all influence what you can/should do.

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Appreciate everyone’s thoughts btw. New to the group & learning DS for PD so this is great!

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