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Former Member

accuracy errors

hi gurus

In which scenerio do we use Error total, Mean squear Error, Squar Root of Mean Error, Mean Percentage Error???

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2 Answers

  • Best Answer
    Jan 18, 2010 at 03:24 PM

    Dear dallyanusha ,

    on the following link you can find these Forecast Accuracy Measurements:

    These are used in Univariate Forecasting.

    Univariate forecasting allows you to measure the forecast error in six ways:

    ● Mean absolute deviation (MAD)

    ● Error total (ET)

    ● Mean absolute percentage error (MAPE)

    ● Mean square error (MSE)

    ● Square root of the mean squared error (RMSE)

    ● Mean percentage error (MPE)

    The system calculates the forecast errors by comparing the differences between the actual values and the ex-post values.

    Use the forecast error measurements to help you evaluate the accuracy of the forecast.

    You select them in the univariate forecast profile. To set upper limits for the forecast error measurements, use the Diagnostic group in the univariate forecast profile; when a limit has been exceeded, the system issues an alert.

    About univariate forecasting you can read more here:

    I hope I could help.



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    Former Member
    Jan 19, 2010 at 06:28 AM

    Hi Dallyanusha,

    The scenario of usage of different errors in determining the forecast

    accuracy purely depends upon the business decision involved.

    It has to be selected based on the type of business data, trend by

    which it is failing continuously.

    Typically, business analysts who is expert on statistics has to

    analyse and review the business data and decide on the scenario to

    be followed.


    R. Senthil Mareeswaran.

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