Four different forecasting methods were applied to a set of time-series data. The root-mean-square error (RMSE) was calculated for each method and is provided in the table below. Rank the four methods from the most accurate to the least accurate?
$$\begin{array} { | l | l | l | l | l | }
\hline \text { Method } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline \text { RMSE } & 10.1 & 11.9 & 12.5 & 9.5 \
\hline
\end{array}$$
A) A, D, B, C
B) D, A, B, C
C) C, B, A, D
D) C, B, D, A

Question

Four different forecasting methods were applied to a set of time-series data. The root-mean-square error (RMSE) was calculated for each method and is provided in the table below. Rank the four methods from the most accurate to the least accurate?
$$\begin{array} { | l | l | l | l | l | } 
\hline \text { Method } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline \text { RMSE } & 10.1 & 11.9 & 12.5 & 9.5 \
\hline
\end{array}$$
A) A, D, B, C
B) D, A, B, C
C) C, B, A, D
D) C, B, D, A

Quizplus · Accepted Answer

The RMSE (Root-Mean-Square Error) is a measure of the differences between values predicted by a model and the values actually observed. The lower the RMSE, the more accurate the forecasting method. Therefore, the methods should be ranked from the lowest RMSE to the highest: D (9.5), A (10.1), B (11.9), C (12.5).

Four Different Forecasting Methods Were Applied to a Set of Time-Series