What risk arises when a small error in measuring a current input feature cascades over a long forecast timeframe, like quarterly revenue?

Answer

Substantial projected error dwarfing inherent model error margin

The sensitivity of input features means a tiny error in a current reading, when multiplied across a long timeframe, can cause the resulting projected error to become substantial, often outweighing the model's inherent error margin.

What risk arises when a small error in measuring a current input feature cascades over a long forecast timeframe, like quarterly revenue?
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