rmse {termstrc} | R Documentation |
Calulates the root mean squared error (RMSE).
rmse(actual, estimated)
actual |
vector, consisting of the observed values. |
estimated |
vector, consisting of the estimated values. |
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.