Theil Index - Meaning of "U"

Meaning of "U"

If U = 1 Then the "Naive" (NF1) Method is as good as the current Forecast Method

If U < 1 Then the Forecasting Method is better than the NF1 Method

If U > 1 Then the NF1 Method is better than the Forecasting Method. There is no need to waste time applying further Forecasting methods.

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