Suppose for a particular week, the forecasted sales were $4,000. The actual sales were $3,000. What is the value of the mean absolute percentage error?
A)-33.3%
B)-25%
C)25%
D)33.3%

Question

Quizplus · Accepted Answer

Mean absolute percentage error (MAPE) is calculated by taking the absolute difference between actual and forecasted values, dividing it by actual values, and then multiplying by 100.

MAPE = (Absolute value of (actual - forecasted) / actual) x 100

Here, actual sales = $3,000 and forecasted sales = $4,000

MAPE = (Absolute value of (3,000 - 4,000) / 3,000) x 100
MAPE = 1,000 / 3,000 x 100
MAPE = 33.3%

Therefore, the answer is D.

Suppose for a Particular Week, the Forecasted Sales Were $4,000