Average Absolute Error (AAE)
Always 40 units high: mean error -40.0000, AAE 40.0000. Unbiased but scattered: 0.0093 and 48.1484.
Always 40 units high: mean error -40.0000, AAE 40.0000. Unbiased but scattered: 0.0093 and 48.1484.
Minimizing MAE produces forecasts of the median; minimizing RMSE produces forecasts of the mean. The metric is a modeling choice, not a scorecard.
The average absolute gap between forecast and actual, in the target’s own units. Easy to read, linear in the error, and a forecast of the median when minimized.
Labels are the expensive part of supervised learning. These methods construct the supervision from the data itself.
A metric is a choice about which errors you will tolerate.