In the fields of forecasting and prediction, forecasting skill or prediction skill is any measure of the accuracy and/or degree of association of prediction to an observation or estimate of the actual value of what is being predicted (formally, the predictand); it may be quantified as a skill score.[1]
In meteorology, more specifically in weather forecasting, skill measures the superiority of a forecast over a simple historical baseline of past observations. The same forecast methodology can result in different skill scores at different places, or even in the same place for different seasons (e.g., spring weather might be driven by erratic local conditions, whereas winter cold snaps might correlate with observable polar winds). Weather forecast skill is often presented in the form of seasonal geographical maps.
Forecasting skill for single-value forecasts (i.e., time series of a scalar quantity) is commonly represented in terms of metrics such as correlation, root mean squared error, mean absolute error, relative mean absolute error, bias, and the Brier score, among others. A number of scores associated with the concept of entropy in information theory are also being used.[2][3]
The term 'forecast skill' may also be used qualitatively, in which case it could either refer to forecast performance according to a single metric or to the overall forecast performance based on multiple metrics.