Percentage Forecasting Error: A New Forecasting Performance Measure – How Accurate is it?

Abstract

The accuracy of forecasts has a critical impact on an organization. A new, practical, and meaningful forecast performance measure, percentage forecasting error (PFE), was introduced by the authors in an earlier publication. In this chapter, we examined the accuracy of the PFE under several different scenarios and found the results to indicate that PFE offers forecasters an accurate and practical alternative to assess forecast accuracy.

Citation

Klimberg, R.K., Sillup, G.P. and Boyle, K. (2011), "Percentage Forecasting Error: A New Forecasting Performance Measure – How Accurate is it?", Lawrence, K.D. and Klimberg, R.K. (Ed.) Advances in Business and Management Forecasting (Advances in Business and Management Forecasting, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 199-208. https://doi.org/10.1108/S1477-4070(2011)0000008016