Mean Error (ME)

The Mean Error (ME) value is calculated as the average error value. It is less reliable in some cases than other accuracy statistics because there is the risk that large outliers can cancel each other out, producing a ME near “0” (which would indicate a perfect fit). For example, positive and negative error values could produce an average of “0”, which may not be an accurate description of the overall fit of the forecast.

Back to Forecasting Methods