Which summary measure for forecast errors does not depend on the units of the forecast variable?
A)MAE (mean absolute error)
B)MFE (mean forecast error)
C)RMSE (root mean square error)
D)MAPE (mean absolute percentage error)

Question

Quizplus · Accepted Answer

MAPE (mean absolute percentage error) is a summary measure for forecast errors that does not depend on the units of the forecast variable because it expresses errors as a percentage, making it unitless and allowing for comparisons across different scales or units of measurement.

Which Summary Measure for Forecast Errors Does Not Depend on the Units