The ________ is a good measure of forecast error when the underlying forecast has significant seasonality and demand varies considerably from one period to the next.
A)MAD
B)MSE
C)MKE
D)MAPE

Question

Quizplus · Accepted Answer

The Mean Absolute Percentage Error (MAPE) is a good measure of forecast error when the underlying forecast has significant seasonality and demand varies considerably from one period to the next. Unlike MAD and MSE, MAPE normalizes the forecast error by dividing it by the actual demand, which makes it a better metric for comparing forecast accuracy across different time periods or products.

The ________ Is a Good Measure of Forecast Error When