What is Formula for RMSPE?

statistics
rmspe

#1

Hello All,

I m little confused what is the right formula for Root Mean Square Percentage Error (RMSPE)
Actual Pred
[1,] 61 60.010
[2,] 62 58.001
[3,] 63 65.200
[4,] 64 59.800
[5,] 65 63.200

According to me it should be as follows :

Step 1 : Difference (Actual-Pred)
Step 2 : Difference / Actual
Step 3 : Multiply by 100
Step 4 : Take Square
Step 5 : Take Square root
Step 6 : Then take Mean

So ,according to me RMSPE should be 4.17

Can anyone verify this approach ?

On web,I m getting different formulas for RMSPE,so little confused regarding it.

Any help from any Statistician in this AV forum would be highly appreciated.

Thanks,
Rohit


#2

http://marswiki.jrc.ec.europa.eu/agri4castwiki/index.php/Methodology_of_forecast_errors_evaluation_methods


#3

@Rohit_Nair, steps 5 and 6 are swapped, and the multiply by 100 should be the end step, otherwise you are distorting the result.


#4

Thanks @caiotaniguchi @danidarshit for the links.


#5