Imagine that we have two different forecasting models. Let's call them Model A and Model B....

 

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Imagine that we have two different forecasting models. Let's call them Model A and Model B. We used these models to forecast the next five periods. In the table below you can find the forecast of these two models, as well as the realization of the variable we forecast. T+1 T+2 T+3 T+4 T+5 realization (actual data) 100 120 110 115 105 Forecasting Models Forecast of Model A 99 117 111 116 104 Forecast of Model B 102 118 111 113 103 Given this information, which model performs better and why? Imagine that we have two different forecasting models. Let's call them Model A and Model B. We used these models to forecast the next five periods. In the table below you can find the forecast of these two models, as well as the realization of the variable we forecast. T+1 T+2 T+3 T+4 T+5 realization (actual data) 100 120 110 115 105 Forecasting Models Forecast of Model A 99 117 111 116 104 Forecast of Model B 102 118 111 113 103 Given this information, which model performs better and why?

Answer rating: 100% (QA)

Lets assess the performance of the models for each period T1 Model A forecast 99 Model B forecast 10... View the full answer