Table 4From “Forecast accuracy can hide offsetting errors”
Distribution matters before the mean
Table 4Distribution matters before the mean
| Set | Signed errors | Mean signed error | Mean absolute error | Shape |
|---|---|---|---|---|
| A | -20, +20, -20, +20 | 0 | 20 | Repeated moderate miss |
| B | -40, 0, 0, +40 | 0 | 20 | Two exact periods and two larger misses |
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From the essay
Revenue operations & AI
Forecast accuracy can hide offsetting errors
A forecast can be unbiased on average while missing every period: keep signed error, absolute error, distribution, horizon, and decision cost separate.
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