THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below shows the quarterly sales of Dragon Ball Z action figures in a toy store.The forecaster uses the double exponential smoothing model to determine the forecast for future periods.
Given: α = 0.7 and β = 0.3

-What is the value of the mean absolute percentage error?
A)46.57
B)19.96
C)75.46
D)26.56

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below shows the quarterly sales of Dragon Ball Z action figures in a toy store.The forecaster uses the double exponential smoothing model to determine the forecast for future periods.
Given: α = 0.7 and β = 0.3
 
-What is the value of the mean absolute percentage error?
A)46.57 
B)19.96 
C)75.46 
D)26.56

Quizplus · Accepted Answer

The best choice is B because it has the lowest mean absolute percentage error (MAPE) of 19.96. The MAPE is calculated by taking the absolute value of the difference between the actual values and the forecasted values, dividing by the actual values, and then taking the average of those percentages over the forecasting periods. The lower the MAPE, the better the forecast accuracy.