A note of minimizing absolute percentage error in combined forecasts

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)1141-1147
Journal / PublicationComputers and Operations Research
Volume28
Issue number11
Publication statusPublished - Sep 2001

Abstract

In this note, two new approaches of combined forecasts are proposed. One approach minimizes mean absolute percentage error while the other approach minimizes the maximum absolute percentage error. A goal programming model is used to obtain the weights to combine different forecasts to minimize the mean absolute percentage error. This formulation can be solved readily by any linear programming computer code. The other approach, minimizing the maximum absolute percentage error, can also be formulated as a goal programming model.

Research Area(s)

  • Combined forecasts, Goal programming