facility noun (PLACE). âº [C] something such as a âplace, âbuilding, or âequipment used for a âparticular âpurpose or âactivity: The new âsports facility has a âswimming âpool. (Definition of facility from the Cambridge Academic Content Dictionary Â© Cambridge University Press).acility noun (PLACE). âº [C] something such as a âplace, âbuilding, or âequipment used for a âparticular âpurpose or âactivity: The new âsports facility has a âswimming âpool. (Definition of facility from the Cambridge Academic Content Dictionary Â© Cambridge University Press).
While economists cloak their views in the aura of science, what they actually do is make assumptions about the world, use those assumptions to build imaginary economies (known as models), and from those models generate conclusions.
The basic assumption behind averaging and smoothing models is that the time series is locally stationary with a slowly varying mean. Hence, we take a moving (local) average to estimate the current value of the mean and then use that as the forecast for the near future. This can be considered as a compromise between the mean model and the random-walk-without-drift-model. The same strategy can be used to estimate and extrapolate a local trend.