Forecasting Accuracy

Forecasting accuracy refers to how closely predictions align with actual outcomes. It involves comparing what was expected to happen with what really happened. Higher accuracy means the forecast was more reliable, while lower accuracy indicates discrepancies. This concept is crucial in various fields, such as finance, weather prediction, and supply chain management, as it helps businesses and individuals make informed decisions based on expected trends. Measuring accuracy often involves using statistical methods to quantify how well forecasts perform over time, guiding improvements in future predictions.