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CPS2176 Chiraz KARAMTI et al.
expected, wavelets provide a degree of refinement and flexibility not available
using conventional forecasting methods. With wavelets, one can choose the
scale at which the forecast is to be made. As evidenced by our results, each
scale level has to be treated as a separate series for forecasting purposes.
These findings suggest that forecasting is more delicate than has been
recognized so far and that forecasts need to be expressed conditional on the
relevant scales (Gallegati and Semmler, 2014; Yousefi et al., 2005).
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