Estimation Procedures

We shall consider three direct estimation procedures and also the method of least squares: empirical, subjective, mixed, and least squares. The general description of these procedures are the same as in the Event Scale case (see the section 2.12.3). Only scales and preceding periods are different.

The only difference from the scalar case is that we predict not the average call rate $z_i$ of the next period $i$ but some vector $z_i=(z_{ij},\j=1,...,J)$ defining the call rates of different parts $j$ of the period $i$. We start by considering daily predictions where index $i$ denotes days and the index $j$ denotes hours.