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Mean error (ME)
•  If the ME is around zero, forecasts are called unbiased. Model
is unbiased to overestimation or the underestimation. Certainly
this is a desirable property of a model
Actual data Forecast based
on Model 1 Error from
model 1 Forecast based
on Model 2 Error from
model 2
100 101 1 110 10
200 199 -1 190 -10
300 301 1 310 10
400 399 -1 390 -10
ME
0
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