Which of the following methods gives an indication of the percentage of forecast error?
A)MAD
B)MSE
C)MAPE
D)decomposition

Question

Quizplus · Accepted Answer

MAPE (Mean Absolute Percentage Error) calculates the percentage of forecast error by taking the absolute value of the difference between actual and forecasted values, dividing that by the actual value, and then averaging those values. This results in a percentage value that is easy to interpret and compare across different data sets. MAD (Mean Absolute Deviation) and MSE (Mean Squared Error) both give a measure of the overall magnitude of the forecast error, but they do not provide a percentage value that can be easily interpreted or compared. Decomposition is a method for separating a time series into its component parts (e.g. trend, seasonality, etc.), but it does not provide a measure of the accuracy of a forecast.

Which of the Following Methods Gives an Indication of the Percentage