rmse {termstrc}R Documentation

Root Mean Squared Error

Description

Calulates the root mean squared error (RMSE).

Usage

rmse(actual, estimated)

Arguments

actual vector, consisting of the observed values.
estimated vector, consisting of the estimated values.

Details

Calculation of the RMSE according to the formula:

mbox{RMSE}=sqrt{frac{1}{m}bm{ε}^2bm{iota}},

whereas bm{ε} is the vector of the yield or price errors of the bonds and bm{iota} is a column vector filled with ones. m is the number of bonds, for which bm{ε} has been calculated.

See Also

aabse


[Package termstrc version 1.1 Index]