Beyond Error Measures to the Utility and Cost of the Forecasts

Elizabeth Yardley and Fotios Petropoulos

Foresight: The International Journal of Applied Forecasting, 2021, issue 63, 36-45

Abstract: The authors criticize the exclusive use of forecast-error metrics to evaluate forecast methods, arguing for evaluations of forecast value, a construct that also incorporates considerations of the utility to the forecast user (influence on decision making), the cost of computation, and opportunity cost of understandability. They highlight evidence on forecast utility and cost from recent studies and explore the implications for forecast-method selection. Copyright International Institute of Forecasters, 2021

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://forecasters.org/foresight/bookstore/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:for:ijafaa:y:2021:i:63:p:36-45

Access Statistics for this article

More articles in Foresight: The International Journal of Applied Forecasting from International Institute of Forecasters Contact information at EDIRC.
Bibliographic data for series maintained by Michael Gilliland ().