What does the "time horizon approach" in prediction modeling focus on?

The "time horizon approach" in prediction modeling primarily focuses on establishing valid timeframes for predictions. This approach is essential as it helps in determining the relevant time period for which predictions should be made, allowing models to generate forecasts that are applicable within a specific timeframe. By defining the time horizon, analysts can ensure that the predictions align with the business objectives, such as short-term versus long-term forecasting, and take into account any seasonal factors or trends that could influence the outcomes.

By concentrating on the correct timeframes, the time horizon approach aids in tailoring the predictive analytics to reflect the expected changes in data patterns over specific periods. This targeted focus is crucial for developing accurate and actionable insights in various business scenarios.