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MSE stands for Mean Squared Error. It is a measure of the performance of an estimate or prediction, equal to the mean squared difference between the observed values and the estimated / predicted values.

MSE stands for Mean Squared Error. It is a measure of the performance of an estimate or prediction, equal to the mean squared difference between the observed values and the estimated / predicted values. For predictions $\hat{y}_1, \dots, \hat{y}_N$ and corresponding actuals $y_1, \dots, y_N$, the MSE is defined as

$$\text{MSE} := \frac{1}{N}\sum_{i=1}^N(\hat{y}_i-y_i)^2.$$

Alternatives to the MSE as a point forecast accuracy measure include the , the and the .