Error Analysis

You can use the Error Analysis method to decide the algorithm for error calculation. The Error Analysis method is calculated for all selected Forecast Methods. The winner is the forecast method with the lowest error.

You must specify hold-out periods to define the periods used for the Error Analysis.

Hold-out periods are typically three monthly periods and maximum of 1/3 of the total available periods.

You can define the Lower and the Upper limits. If the calculation of the error analysis method is outside these limits, the forecast method is not selected as winner. You can perform competitive forecasting without finding a winner that is good enough. You can define a scoreboard to identify key records without a winner for manual inspection and perhaps determine a different forecast method or a different competitive method that is better suited.