Using the data below, determine the MAPE.
A)5.0 percent
B)7.25 percent
C)5.99 percent
D)5.41 percent

Question

Using the data below, determine the MAPE. 
A)5.0 percent 
B)7.25 percent 
C)5.99 percent 
D)5.41 percent

Quizplus · Accepted Answer

To calculate MAPE (Mean Absolute Percentage Error), we need to first calculate the Absolute Percentage Error (APE) for each data point, which is the absolute value of the difference between the forecasted and actual values divided by the actual value.

APE for each data point:
APE1 = |(400-380)/380| = 0.0526
APE2 = |(360-340)/340| = 0.0588
APE3 = |(520-500)/500| = 0.04

Next, we calculate the average APE for all data points:

(APE1 + APE2 + APE3)/3 = (0.0526 + 0.0588 + 0.04)/3 = 0.0505

Finally, we convert the APE to a percentage by multiplying by 100 to get the MAPE:

MAPE = 0.0505 * 100 = 5.05%, which is closest to option C - 5.99%. Thus, the correct answer is C.

Using the Data Below, Determine the MAPE