Part 2. MM4XL Tools > 2. Analytical Tools > Business Formulas > 3. Forecast Errors > mmRMSE, Root-Mean-Square Error

Business Formulas

mmRMSE, Root-Mean-Square Error

Category: Forecast

The Root-Mean-Square Error (RMSE), also called root-mean-square deviation (RMSD), is a measure of precision frequently used to measure the differences between values predicted by a model (or an estimator) and the values actually observed from the thing being modeled or estimated. These individual differences are also called residuals, and the RMSD serves to aggregate them into a single measure of predictive power.

Business analysis formulas for Excel. Marketing tool for professionals

Syntax

mmRMSE(Actual_Data, Optional Forecast_Data)

Actual_Data Either Sales Values, then the next variable is required, or Error values
Forecast_Data Optional - Forecast Data, required if the previous variable equal to Sales Values

Example

See example file Business Formulas.xls, sheet mmRMSE.

Business analysis formulas for Excel. Marketing tool for professionals

Related functions
  • mmDW
  • mmMAD
  • mmMAPE
  • mmME
  • mmMSE
  • mmSEASON
  • mmU
  • mmBASS
  • mmRANGE
  • mmRANK
  • mmVARc
Related MM4XL software tools
  • Forecast Manager
  • Brand Switch Analyst
  • Profile Manager
Source
Wayne L. Winston and S. Christian Albright, 2001, Practical Management Science
Lifetime license:
MM4XL All Tools
Price: euro 238.00

Vote this tool
403 votes: vote vote vote vote vote
5 stars:
145
4 stars:
187
3 stars:
61
2 stars:
8
1 star:
2
We proudly serve
Your vote
vote1 vote2 vote3 vote4 vote5
Email:
Gender:
M
F
Age:
Position:
Department:
Comment: