What is persistence modelling?

Persistence modeling is a statistical approach used in forecasting that assumes future conditions will closely resemble past observations. It relies on historical data to predict future outcomes without accounting for potential changes in trends or external influences. This method is often used in time series analysis, particularly for short-term forecasts, as it is simple to implement and can provide a baseline for more complex models. However, its limitations include a lack of responsiveness to changing patterns or events.