[The following information applies to the questions displayed below.]
$\begin{array}{crccc}
& \text { Actual } & & \
\text { Period } & \text { Demand } & \text { Forecast Demand } & \text { Error } & \text { Absolute Value } \
1 & 800 & 1100 & (300) & 300 \
2 & 1200 & 1000 & 200 & 200 \
3 & 1400 & 1500 & (100) & 100
\end{array}$
-The Mean Absolute Percentage Error (MAPE)is approximately:
A)200%
B)-27.98%
C)20.44%
D)53.93%

Question

[The following information applies to the questions displayed below.]
 $\begin{array}{crccc}
& \text { Actual } & & \
\text { Period } & \text { Demand } & \text { Forecast Demand } & \text { Error } & \text { Absolute Value } \
1 & 800 & 1100 & (300) & 300 \
2 & 1200 & 1000 & 200 & 200 \
3 & 1400 & 1500 & (100) & 100
\end{array}$
-The Mean Absolute Percentage Error (MAPE)is approximately:
A)200%
B)-27.98%
C)20.44%
D)53.93%

Quizplus · Accepted Answer

The formula for MAPE is $\frac{1}{n}\sum_{t=1}^n\left|\frac{A_t-F_t}{A_t}ight|	imes100\%$, where $A_t$ is the actual demand and $F_t$ is the forecast demand in period $t$. Plugging in the given values, we get:

$$\frac{1}{3}\left(\frac{|800-1100|}{800}+\frac{|1200-1000|}{1200}+\frac{|1400-1500|}{1400}ight)	imes100\% \approx 20.44\%$$

Therefore, the best choice is C.

[The Following Information Applies to the Questions Displayed Below -The Mean Absolute Percentage Error (MAPE)is Approximately: A)200% B)-27

[The Following Information Applies to the Questions Displayed Below -The Mean Absolute Percentage Error (MAPE)is Approximately:
A)200%
B)-27