Glossary
Glossary

Forecast Error

A forecast error is the difference between the predicted or forecasted value of a particular variable and the actual value that is observed, serving as an important metric for evaluating the accuracy of forecasting models. Within the Kohort platform we use CLV as the key metric for forecast error monitoring as it is produced as one of the final outputs of our model, after all other forecasts are complete. As such, it provides a meta-validation for the model as a whole. Our automated CLV Accuracy report snapshots every forecast we make to build a running error check against the latest Actuals.

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