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Former Member
Oct 21, 2010 at 01:53 PM

Errors in Forecasting


Hi Experts

Errors in forecasting helps us for decent accuracy.

We have 6 errors which are MAD,MAPE, MPE, MSE, RMSE & ET.

Can you explain importance of each error in forecasting?

I found MAD and MAPE are used significantly to judge forecast.If we take multiple products in the selection ID which error is use to measure accuracy.What is the significance of MSE,RMSE,MPE.

I tried statistical forecast in DP, the historical data is very random and dynamic,i have taken Historical data for 36 months and generated forecast for 12 months.

The output of the forecast is constant even i tried with different Alpha, Beta & Gama Values.But no use its showing constant forecast.I used Auto Model selection 1 and 2.

But as far as my understanding, system should give same pattern as historical data but in our case system is giving constant forecast.

Please advice.