Expected RMSE

The Expected RMSE (Root Mean Squared Error) is the evaluation of the error made when using the predictive model to estimate the future values of the target, over the horizon.

The RMSE is the square root of the mean of the squared differences between actual and forecasted values, expressed in the unit of the actual values.

The lower the value of the Root Mean Squared Error, the better the predictive model is. A perfect predictive model would have a Root Mean Squared Error value of 0.

The Root Mean Squared Error has the advantage of representing the amount of error in the same unit as the predicted column making it easy to interpret. If you are trying to predict an amount in dollars, then the Root Mean Squared Error can be interpreted as the amount of error in dollars.