Producing good forecast is a vital aspect of a business. The accuracy of these forecasts could have a critical impact on the organization. We introduce a new, practical, and meaningful forecast performance measure called percentage forecast error (PFE). The results of comparing and evaluating this new measure to traditional forecasting performance measures under several different simulation scenarios are presented in this chapter.
Klimberg, R.K., Sillup, G.P., Boyle, K.J. and Tavva, V. (2010), "Forecasting performance measures – what are their practical meaning?", Lawrence, K.D. and Klimberg, R.K. (Ed.) Advances in Business and Management Forecasting (Advances in Business and Management Forecasting, Vol. 7), Emerald Group Publishing Limited, Bingley, pp. 137-147. https://doi.org/10.1108/S1477-4070(2010)0000007012
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