Intercorrelations of Measures of Forecasting Accuracy and a Recommendation


  • John R. Dickinson University of Windsor


Forecasting plays several roles in business games. Regarding sales forecasting, and more specifically the accuracy of sales forecasting, several definitions have been conceptualized and applied. Despite their conceptual differences, if the measures yield high intercorrelations then, empirically at least, the choice among them may be a matter of indifference. The present research summarizes numerous forecasting accuracy measures, estimates their intercorrelations, and concludes with some considerations for working toward a consensus and a recommendation.