
SIZING THE IMPACT OF HIGH-STAKES WEATHER FORECAST VOLATILITY VS. ACCURACY ON USER RETENTION
ROLE
Lead Researcher
METHODS
Quantitative/Experimental
DEVELOPMENT TIME
4 months
Problem
Forecasts for major weather events often begin days in advance. Although weather models constantly change, growing more accurate on average as lead times decrease (Lazo, Morss, & Demuth, 2009; Wilson & Giles, 2013), forecasters are often hesitant to update the forecasts they provide the public out of fear that inconsistency (mismatching forecast values) in subsequent forecasts will result in user skepticism and churn. Because accuracy generally increases as lead times decrease, the choice to maintain consistency can be at tradeoff with accuracy. The purpose of this study was to directly compare the effects of forecast inaccuracy and inconsistency on trust to inform whether retention is best preserved by updating forecasts (to be more accurate) or artificially maintaining consistency. ​
Method
Study Design
Forecast accuracy and consistency were manipulated within-groups using a computer-based task in which participants monitored sequences of snow forecasts in order to make school closure decisions. There were 24 trials (including 8 filler trials) of 24-hour snowfall accumulation forecasts at 48 and 24 hours in advance of the target date. This allowed me to assess the impact of consistency and accuracy on trust ratings reported after learning the outcome on each trial, as well as on snow accumulation estimates, and closure decisions.
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Participants were told to advise closing if they expected six or more inches of snow accumulation.

Stimuli
To ensure the effects observed were due to accuracy and consistency alone, I controlled for a number of forecast characteristics. In particular, I attempted to maintain:

Forecast Data: Experiments 1-3
Because of the tight control of extraneous variables required to examine the effects of forecast accuracy and consistency, no individual experiment was capable of fully addressing them. Therefore, these effects were addressed by the combined results of three experiments in which uncontrolled characteristics were traded across.

Insights
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Inaccuracy and inconsistency both reduced trust.
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However, the magnitude of the reduction due to inaccuracy was considerably larger than that due to inconsistency.
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Therefore, where trust is a concern, forecasters should update forecasts to be more accurate regardless of consistency.
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In addition, inconsistency may have other benefits as well. In particular, it can:
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​communicate uncertainty
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encourage more cautious decisions
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Limitations
The tight control of extraneous variables was done at a loss to ecological validity.
Outcome
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Increased user trust, understanding, and appropriate protective action.