forecasting-accuracy

Vocabulary Word

Definition

'Forecasting accuracy' is the degree to which past forecasts have matched the actual outcomes. If your predictions are consistently correct, you have high forecasting accuracy.

Examples in Different Contexts

In business analytics, 'forecasting accuracy' measures how closely forecasted data matches actual outcomes. A data analyst might say, 'By improving our forecasting accuracy, we've been able to reduce inventory costs significantly.'

Practice Scenarios

Business

Scenario:

Our revenue prediction seems to differ significantly from the actual figure. We need to find out why.

Response:

Indeed, we must improve our forecasting accuracy to get a better handle on upcoming fiscal quarters.

Tech

Scenario:

Our ML model's output doesn't match our test data well. It's crucial we look into this discrepancy.

Response:

Let's revisit our model to improve the forecasting accuracy, reducing the error margins.