How do you measure forecast accuracy?

To measure the accuracy of forecasts, several metrics can be employed depending on the nature of the data and the forecasting model used. Common metrics include Mean Absolute Error (MAE), Mean Absolute Percentage Error (MAPE), and Root Mean Squared Percentage Error (RMSPE). These metrics provide insights into the average difference between forecasted and actual values, with MAPE and RMSPE offering additional context on the percentage errors. Choosing the right metric depends on the specific requirements of the forecasting task, such as sensitivity to outliers or the need to understand percentage errors.