Question

what is the mean absolute percent error of the following forecasts? period actual demand forecast 1 800 720 2 700 720 3 1800 720 4 300 720 5 750 720

Answer 1

To find the mean absolute percent error, calculate the percent error for each forecast and then find the average. The mean absolute percent error for the given forecasts is 43.97%.

Step-by-step explanation:

To find the mean absolute percent error, we need to calculate the percent error for each forecast and then find the average. The formula for percent error is:

Percent Error = |(Actual - Forecast) / Actual| * 100

Using the given data, we can calculate the percent error for each forecast:

• For period 1: Percent Error = |(800 - 720) / 800| * 100 = 10%
• For period 2: Percent Error = |(700 - 720) / 700| * 100 = 2.86%
• For period 3: Percent Error = |(1800 - 720) / 1800| * 100 = 60%
• For period 4: Percent Error = |(300 - 720) / 300| * 100 = 140%
• For period 5: Percent Error = |(750 - 720) / 750| * 100 = 4%

We can now calculate the mean absolute percent error by taking the average of these percent errors:

Mean Absolute Percent Error = (10% + 2.86% + 60% + 140% + 4%) / 5 = 43.97%

Answer 2

The Mean Absolute Percent Error (MAPE) for the provided forecasts is calculated to be 43.372%, based on the absolute percent errors between the forecasted and the actual demand values across five periods.

Step-by-step explanation:

The Mean Absolute Percent Error (MAPE) is a measure of prediction accuracy in a forecasting method. It calculates the average of the absolute percent errors between the forecasted and actual values. To find the MAPE, we:

Let's calculate the MAPE for the given data:

Now, add up these percent errors and divide by the number of periods:

(10% + 2.86% + 60% + 140% + 4%) / 5 = 43.372%

So, the MAPE for these forecasts is 43.372%.