Resolved: prediction accuracy
In Multiple Regression (Forecasting)_Analysis.xlsx, how can I numerically calculate the accuracy of predictions in column E versus column F? Thanks.
Hello James!
Thanks for reaching out!
I suppose you mean column D (the actual information about the independent variable)? The reason I'm asking is because Columns E and F demonstrate two functions in Excel for preding the independent variable. So, they contain basically the same information.
But going back to your questions, you can calculate the accuracy of predictions using the Mean Absolute Error (MAE): This measures the average magnitude of the errors in a set of predictions, without considering their direction. It’s calculated as the average of the absolute differences between the predicted values and actual values.
Alternatively, you can use the Mean Squared Error (MSE): This measures the average of the squares of the errors—that is, the average squared difference between the estimated values and the actual value.
Hope this helps!
Best,
The 365 Team