Forecasting Evaluation Metrics

Summary

Metrics specific to forecasting quality — MAPE (mean absolute percentage error) is intuitive but breaks down near zero values, RMSE and MAE from Phase 7 also apply directly to forecasting.

• 1Calculate MAPE, MAE, and RMSE for a forecast and compare what each emphasizes.
• 2Learn why MAPE becomes unstable or undefined when actual values are near zero.
• 3Practice presenting a forecast's expected error range, not just a single predicted number.