General understanding of statistics
I have been working on creating a strategy and forecasting eletricity prices. My problem is that I think I confused my self in the process. The residuals of the series looks normally distributed and centered around 0 which fits the model assumptions. But why do the residuals need to be fullfill these properties?
I read somewhere that the data is random when these assumptions aren't broken. But I don't understand why it would be a problem that the data is not random and is systematic. In my head I thought the process is about wanting to see trends and systems in the data that you can use for your benefit.
Can you explain why I want random data? Maybe help clear these confusions and tell me how I would be able to use random data to forecast?
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