Forecast skill

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Skill in forecasting (or skill score[1], forecast skill, prediction skill) is a scaled representation of forecast error that relates the forecast accuracy of a particular forecast model to some reference model.

Mean squared error (MSE) \ \mathit{MSE} = \frac{\sum_{t=1}^N {E_t^2}}{N}
Forecast skill (SS) \ \mathit{SS} = 1- \frac{\mathit{MSE}_\text{forecast}}{\mathit{MSE}_\text{ref}}

A perfect forecast results in a forecast skill of 1.0, a forecast with similar skill to the reference forecast would have a skill of 0.0, and a forecast which is less skillful than the reference forecast would have negative skill values.[2][3] Reference class forecasting was developed to increase forecast skill.[4]

[edit] References

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