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Equation 1 · Part 8 · Futures Methods and Technological Scenarios in Practice: An Advanced Technical Guide

subtraction

B=1N∑i=1N(pi−oi)2B = \frac{1}{N}\sum_{i=1}^{N} (p_i - o_i)^2
subtraction

What this part means

Subtract the following term or group from the preceding one. A leading minus marks a negative quantity.

Its job in the formula

Subtract the following term or group from the preceding one. A leading minus marks a negative quantity.

The passage around this formula

The Brier score is the mean squared error between a stated probability and the binary outcome (1 if it happened, 0 if it did not): B=1N∑i=1N(pi−oi)2B = \frac{1}{N}\sum_{i=1}^{N} (p_i - o_i)^2. where pip_i is the forecaster’s stated probability on question i and oio_i ∈\in \{0,1\} is the realized outcome. Lower is better; a perfectly calibrated coin-flip forecaster scores 0.25 on a 50/50 question, and a forecaster who says 100 percent and is wrong scores the maximum possible 1.0.

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Learn the underlying idea

Addition combines quantities; subtraction measures the signed difference between them. Parentheses show what is combined before the rest of the expression is evaluated.

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Sources cited in the article section

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