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October 15, 2012 by
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3 Comments on WordPress

  1. S├ębastien Derivaux on Sat, 20th Oct 2012 9:06 pm
  2. Such measure are really helpful for us (analysts) not least to keep track of our progress, but it’s not that interresting for business.

    You couldn’t convince anyone with such a 4 letter acronym. The only indicator that count here is the amount of money such forecasting can save versus the current model. That need some post processing to derive $ value from the model. Sometimes decreasing the RMSE is not saving money, quite the opposite.

    For the analyst, the RMSE/MAE (Mean average error) or the correlation between forecast and the testing set can give insights if we are a bit wrong most of the time, or very wrong on some critical spots.

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