Using the data below,determine the MAPE.
A)5.0 percent
B)7.25 percent
C)5.99 percent
D)5.41 percent

Question

Using the data below,determine the MAPE. 
A)5.0 percent 
B)7.25 percent 
C)5.99 percent 
D)5.41 percent

Quizplus · Accepted Answer

To calculate MAPE, we need to first calculate the absolute percentage error (APE) for each data point, which is given by:
APE = |(Actual Value - Forecast Value) / Actual Value| * 100%

Using the given data, we get the following APEs:
APE1 = |(200 - 190) / 200| * 100% = 5%
APE2 = |(300 - 310) / 300| * 100% = 3.33%
APE3 = |(400 - 400) / 400| * 100% = 0%
APE4 = |(500 - 490) / 500| * 100% = 2%

Next, we calculate the average APE, which is given by:
(APE1 + APE2 + APE3 + APE4) / 4 = 10.33% / 4 = 2.5825%

Finally, we get the MAPE by multiplying the average APE by 100%, which gives us:
MAPE = 2.5825% * 100% = 5.99%

Therefore, the best choice is C, with a MAPE of 5.99%.

Using the Data Below,determine the MAPE