Consider the following to answer the question(s) below:
A company has developed a linear trend model to forecast monthly sales. The following data show the actual sales and the "fitted" sales for months 1-12.

-Based on these data, what is the mean absolute percentage error (MAPE) for the linear trend model?
A) 22.79
B) 81.33
C) 2.73
D) 796
E) 0.22

Question

Consider the following to answer the question(s) below:
A company has developed a linear trend model to forecast monthly sales. The following data show the actual sales and the "fitted" sales for months 1-12.
 
-Based on these data, what is the mean absolute percentage error (MAPE) for the linear trend model?
A) 22.79 
B) 81.33 
C) 2.73 
D) 796 
E) 0.22

Quizplus · Accepted Answer

The mean absolute percentage error (MAPE) is calculated as the average of the absolute percentage errors for each data point. The absolute percentage error for each data point is calculated as the absolute value of the difference between the actual value and the predicted value, divided by the actual value. The mean absolute percentage error for the linear trend model is 22.79%.

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