The process of using different forecasts to produce another forecast. Typically, the term refers to cases where the combining is based on an explicit, systematic, and replicable scheme, such as the use of equal weights. If subjective procedures are used for averaging, they should be fully disclosed and replicable. Combining forecasts should not be confused with combining forecasting methods. Combining is inexpensive and almost always improves forecast accuracy in comparison with the typical component. It also helps to protect against large errors. See Armstrong (2001e).