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Mean Absolute Error

Trading Term

Mean absolute error, often abbreviated MAE, is the average size of forecast misses expressed in the units of the variable being forecast and without regard to whether the miss was high or low. A set of daily high temperature forecasts with an MAE of 1.3°F missed the observed high by 1.3°F on average. MAE penalizes large errors less heavily than root mean squared error does, so the two are often reported together when comparing forecasting systems that differ in how often they produce large busts.

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