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Calculating forecast accuracy as a percentage

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    Calculating forecast accuracy as a percentage

    I am wanting to calculate forecast accuracy compared to sales where I have one column with actual sales figures and two other columns with forecasts. What I need to do is display the accuracy of each forecast against actual sales in terms of a percentage.

    Simply showing the percentage difference is not good enough (can be anywhere from -200% to +200% as our sales guys are rubbish at forecasting), I need to show the accuracy as a figure from 0% to 100%.

    I've been mucking around with this for over three hours and not getting anywhere.

    Can anyone provide some assistance?

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    The efficiency of the forecast is: (1-(actual/forecast))*100; a negative value would indicate actual as less than forecast...
    Last edited by protonLeah; 06-07-2006 at 12:21 AM.
    Ben Van Johnson

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    Thanks for the response Ben. I was hoping to be able to go with a percentage accuracy figure but am happy to go with an efficiency figure instead as you suggest.

    However, do I assume correctly that a figure closest to zero is the best when measuring the efficiency of the various forecasts against actual sales (-5 is better than 20)?

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