Mean absolute percentage error (MAPE)is the ______.
A)average of the sum of the absolute differences between the actual and forecasted demand values
B)average of the sum of the squared differences between the actual and forecasted demand values
C)average of the absolute percentage error
D)average of the absolute differences between the actual and forecasted demand values

Question

Quizplus · Accepted Answer

MAPE calculates the average of the absolute percentage error between actual and forecasted demand values. The other choices involve either squared versions or simple differences, which do not give an accurate representation of the forecasting error in terms of percentage.

Mean Absolute Percentage Error (MAPE)is the ______