Purchase Solution

Evaluating Forecasting Accuracy

Not what you're looking for?

Ask Custom Question

Describe two ways in which forecasting accuracy can be evaluated.

Purchase this Solution
Solution Summary

This response provides brief description on two ways of evaluating Forecasting Accuracy using a formula to identify scaled error for a non-seasonal time series.

Solution Preview

Way of Evaluating Forecasting Accuracy
Scaled Error Method: It is an important method for evaluating forecast accuracy across series of different scales. It provides scaling of error on the basis of training MAE (mean absolute error) from a simple forecast method. Following is the formula to identify scaled error for a non-seasonal time series:

(See attachment for formula)

Here, qj is ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

View More Free Quizzes
Related BrainMass Solutions

  • Forecasting- Models, monitoring

    It can monitor the accuracy of the forecasts by evaluating the actual results with the forecast values.

  • Demand Forecasting: Measuring forecast accuracy and comparing different techniques/algorithms

    Two forecasting error/accuracy measures are used, 1) Mean absolute percentage error (MAPE) and 2) Mean absolute deviation (MAD).

  • Seasonal forecasting



    Forecast errors give you a way of evaluating which forecasting technique gives the best results. I favor R2, the coefficient of determination; however, the tracking signal probably gives the best overall indicator of forecast accuracy.

  • Analysis on 4 forecasting models using Excel

    Based upon using mean absolute deviation (MAD) as a measure of forecast accuracy, which of the forecast models would be the preferred forecast model (i.e., which model provides the greatest degree of forecasting accuracy)?

  • Forecasting tools

    The most important criteria for the selection of forecasting tool are accuracy. The Method which produces accurate results is selected for the forecasting of situations.

  • Role that forecasting should play at Strident Marks

    Estimating Accuracy of a Forecast How much accuracy can reasonably be expected from this forecast? Before any forecasting process is undertaken, a business decision should be made as to how much accuracy can reasonably be expected from it.

  • How to gauge validity of business forecasts

    Second, Smith must look at the forecasting models used. Judging the accuracy of the forecast using only one forecasting method will be misleading.

  • Understanding Forecasting models as they apply to products

    Following are the reason to use this model for bathing suit demand: Short time horizon, Low complexity of model Low cost of model Fair accuracy Low data requirements Forecasting Model for Estimating Demand of New Houses: Demand for new

  • Designing a Forecasting Process

    to ensure both its relevance and accuracy Forecasting product demand is examined.

View More Related Solutions