Question

For a certain dataset, the regression method has an MAE of 2.5, and the exponential smoothing method has an RMSE of 3.0. Can we say, "For this dataset, the regression method is more accurate than the exponential smoothing"? Explain why or why not.

Answer 1

Yes, we can say that the regression method is more accurate than the exponential smoothing because MAE is the absolute error and RMSE is the squared error and the difference between the two is not large, therefore the model based on MAE should be preferred, if the value of MAE is at least double of RMSE then we may consider MAE because it penalizes large errors. Also, the interpretation of MAE is easy as compared to RMSE hence from interpretation point of view, MAE is more appropriate.

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