Use Scaled Errors Instead of Percentage Errors in Forecast Evaluations

Lauge Valentin

Foresight: The International Journal of Applied Forecasting, 2007, issue 7, 17-22

Abstract: Lauge Valentin presents a case for abandoning percentage errors when evaluating forecasts and replacing them by scaled errors. He describes how the shift from percentage errors to scaled errors was motivated by his company’s need for an accuracy statistic that would lend itself to benchmarking across product groups. Lauge shows how scaled error measures are used in the LEGO Group for evaluating forecast performance. Copyright International Institute of Forecasters, 2007

Date: 2007
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