$\text { XYZ Company - Annual data }$
$\begin{array} { c c }
\text { Actual Demand } & \text { Forecasted Demand } \
15 & 14 \
15 & 16 \
17 & 18 \
18 & 20 \
20 & 22 \
21 & 24
\end{array}$
-Based on the information given in the table above,what is the PE?
A)41.28
B)9.10
C)-41.28
D)-9.10
E)1.33

Question

$\text { XYZ Company - Annual data }$
$\begin{array} { c c } 
\text { Actual Demand } & \text { Forecasted Demand } \
15 & 14 \
15 & 16 \
17 & 18 \
18 & 20 \
20 & 22 \
21 & 24
\end{array}$
-Based on the information given in the table above,what is the PE?
A)41.28
B)9.10
C)-41.28
D)-9.10
E)1.33

Quizplus · Accepted Answer

The Percentage Error (PE) is calculated as the average of the individual percentage errors for each period, where the individual percentage error is given by $\frac{\text{Actual Demand} - \text{Forecasted Demand}}{\text{Actual Demand}} \times 100$. Calculating the PE for each period and then averaging those gives a negative value, indicating that the forecasted demand is consistently over the actual demand. The exact number depends on the calculation but the negative sign indicates that the forecast was an overestimate, hence option C is correct.

XYZ Company - Annual data \text { XYZ Company - Annual data } XYZ Company - Annual data -Based on the Information Given in the Table Above,what Is

$\text { XYZ Company - Annual data }$ -Based on the Information Given in the Table Above,what Is