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Impact of Exogenous Variables on AI/ML Predictive Algorithm Prophet, in the FMCG Industry by Ryan Justin Anthony Rocke BSc, Mechanical and Manufacturing Engineering, The University of the West Indies and Lili Zhang BEng, Automation, Southwest Petroleum University SUBMITTED TO THE PROGRAM IN SUPPLY CHAIN MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF APPLIED SCIENCE IN SUPPLY CHAIN MANAGEMENT AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY May 2024 2024 Ryan...
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01
Identify the exogenous variables relevant to your analysis.
02
Collect data for the identified exogenous variables.
03
Determine the time frame for which you want to assess the impact.
04
Use statistical methods to analyze the relationship between the exogenous variables and the dependent variable.
05
Interpret the results of the analysis to understand the impact of the exogenous variables.

Who needs impact of exogenous variables?

01
Economists who analyze market trends.
02
Business analysts looking to understand external factors affecting performance.
03
Policy makers evaluating the impact of external changes on economic metrics.
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Researchers studying social or environmental issues influenced by external factors.
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Exogenous variables are factors that originate outside a system and can have significant influences on the outcomes of that system. Their impact can include changes in trends, shifts in demand, or fluctuations in market conditions that affect the overall performance and results.
Entities involved in research, economic analysis, and financial reporting, including businesses, economists, and regulatory bodies, are typically required to file reports on the impact of exogenous variables.
To fill out the impact of exogenous variables, one should identify the relevant variables, analyze their potential effects on the system in question, and provide quantitative or qualitative data in a structured format according to the reporting guidelines.
The purpose is to understand how external factors influence system performance, to enhance forecasting, improve decision-making, and to assess risks associated with the variability of these external influences.
Typically, the report should include the identified exogenous variables, their expected impacts, any data or models used in the analysis, and conclusions or recommendations based on the findings.
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