Standard Article

Evaluating and Comparing Forecasting Models

  1. Shouyi Wang,
  2. Wanpracha Art Chaovalitwongse

Published Online: 15 FEB 2011

DOI: 10.1002/9780470400531.eorms0307

Wiley Encyclopedia of Operations Research and Management Science

Wiley Encyclopedia of Operations Research and Management Science

How to Cite

Wang, S. and Chaovalitwongse, W. A. 2011. Evaluating and Comparing Forecasting Models. Wiley Encyclopedia of Operations Research and Management Science. .

Author Information

  1. Rutgers University, Department of Industrial and Systems Engineering, Piscataway, New Jersey

Publication History

  1. Published Online: 15 FEB 2011

Abstract

Forecasting is a very important aspect of any business, and has enormous social, economic, and environmental impacts. Various forecasting models have been developed to help people make right decisions against future uncertainties. However, all forecasting models have distinct advantages and limitations. Selecting appropriate forecasting methods from numerous alternatives is crucial to success. This article briefly summarizes the state-of-the-art forecasting methods in terms of basic procedure, underlying assumptions, applications, and limits. And then the most popular model selection criteria and guidelines are presented.

Keywords:

  • forecasting models;
  • forecasting model selection