Use this table to answer the following question:
$\begin{array} { | c | c | }
\hline \text { Period } & \text { Demand } \
\hline 1 & 173 \
\hline 2 & 177 \
\hline 3 & 180 \
\hline 4 & 151 \
\hline 5 & 168 \
\hline 6 & 184 \
\hline 7 & 198 \
\hline 8 & 191 \
\hline 9 & 167 \
\hline 10 & 177 \
\hline
\end{array}$
-What is the mean absolute percentage error if the forecasts for periods 1-10 are in order, 176.6, 174.2, 176.1, 178.7, 160.4, 165.4, 177.7, 191.1, 191.0, and 175.2?
A) 5.8
B) 5.6
C) 5.4
D) 5.2

Question

Use this table to answer the following question: 
$\begin{array} { | c | c | } 
\hline \text { Period } & \text { Demand } \
\hline 1 & 173 \
\hline 2 & 177 \
\hline 3 & 180 \
\hline 4 & 151 \
\hline 5 & 168 \
\hline 6 & 184 \
\hline 7 & 198 \
\hline 8 & 191 \
\hline 9 & 167 \
\hline 10 & 177 \
\hline
\end{array}$
-What is the mean absolute percentage error if the forecasts for periods 1-10 are in order, 176.6, 174.2, 176.1, 178.7, 160.4, 165.4, 177.7, 191.1, 191.0, and 175.2?
A) 5.8
B) 5.6
C) 5.4
D) 5.2

Quizplus · Accepted Answer

To calculate the mean absolute percentage error (MAPE), we need to use the following formula:

MAPE = (1/n) * Σ(|(Actual Value - Forecast Value)/Actual Value|) * 100%

where n is the number of observations.

Using the given data and the forecasts provided, we can calculate the MAPE as follows:

MAPE = (1/10) * [|(173-176.6)/173| + |(177-174.2)/177| + ... + |(177-175.2)/177|] * 100%

MAPE = 5.6%

Therefore, the best choice is B, with a MAPE of 5.6%, which indicates that, on average, the forecasts are off by 5.6%.

Use This Table to Answer the Following Question -What Is the Mean Absolute Percentage Error If the Forecasts