Conventional statistical forecasting methods typically need a large sample size or the use of overly confident hypotheses, like the Gaussian distribution of the input data. Unfortunately, these input data are frequently scarce or do no not follow a normal distribution law. A grey forecasting model can be developed and used to predict energy consumption for at least four data points or ambiguous data based on grey theory. The standard grey model, however, may occasionally result in significant forecasting errors.
In order to reduce these errors, this paper proposes a hybrid multivariate grey model (namely Grey Modeling (1,N)) optimized by Genetic Algorithms with sequential selection forecasting mechanism, abbreviated as Sequential-GMGA(1,N). A real case of Cameroon's oil products consumption is considered to demonstrate the effectiveness of the proposed forecasting model.
The results show the superiority of Sequential-GMGA(1,4) when compared with the results of competing grey models reported in the literature, with a mean absolute percentage error as low as 0.02%.
Without changing the model's basic structure, the suggested framework completely extracts the evolution law of multivariate time series. Regardless of data patterns, Sequential-GMGA(1,4) actively enhances all model parameters over the course of each predicted timeframe. Consequently, Sequential-GMGA(1,4) improves forecast accuracy by resolving the discrepancy between the model's least sum of squares of prediction errors and the parameterization approach based on grey derivative.
