1. Absolute errors:
Absolute error is the difference between the true and estimated value Absolute error = actual value – estimated value
2. Relative errors:
It is the ratio of obsolute error to the estimated value. It is found out by dividing the absolute error by the estimated error.
Relative Error = \(\frac{Actual\,value\, -\,Estimated\,value}{Estimated\,error}\)
Example:
If the actual value is 400 & estimated value is 350
Absolute error = actual error – estimated value
= 400 – 350 = 50
Relative error = 50/350 = 0.14
The relative error can also be expressed as percentage of 100.
