RMSE for Midterm Assignment

JalalZaheed

Hi there,

I was wondering if there is a benchmark RMSE we should aim for while creating our predictive models? In particular, I'm wondering what RMSE we should expect if we're predicting for something such as 'latestPrice'? I'm assuming its typical to get an RMSE that's absurdly high due to the nature of latestPrice (e.g., extreme outliers, big range, large numbers), but I wanted to confirm this.

Kee

Your observation is correct. With extreme outliers, RMSE could be a large number. Regarding RMSE (and other model performance metrics), there is no specific benchmark to aim for it. You may consider these performancemetrics as measures to compare different models and figure out which model is better. Hope it helps!