Give a brief discussion of the following statements 1 OLS eq

Give a brief discussion of the following statements:
1. OLS equations will never be much use for forecasting because it is unreasonable to
assume that the future will be like the past.
2. Although the above is true, you can still use OLS very successfully for evaluation of a
model by holding back some data to do forecasts.

Solution

1) this statement seems to be near to the truth . people while forecasting seems to see the future as same as past even if the future is changing gradually from the past.

2) yes as the future never changes drastically in comparison to the past so while forecasting we can rely that the thing will me somewhere around the forecasted value.