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The error modelling module is a generic forecasting module. The module is used to improve the reliability of forecast by attempting to identify the structure of the error a forecasting module makes during the modelling phase where both the simulated and observed values are available, and then applying this structure to the forecast values. This is under the assumption that the structure of the error remains unchanged. A description of the background of this module can be found at AR Module Background information. In defining the error model three time series will need to be defined;
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