________ is absolute error as a percentage of demand.
A) Cumulative error
B) MAD
C) MAPD
D) Average error

Question

Quizplus · Accepted Answer

MAPD (Mean Absolute Percent Deviation) is the measure of absolute error as a percentage of demand. It gives a better picture of the accuracy of the forecast compared to MAD (Mean Absolute Deviation) or Cumulative error, which do not take the scale of demand into account. Average error is also not a good measure as it tends to offset positive and negative errors, giving an inaccurate representation of forecast accuracy.

________ Is Absolute Error as a Percentage of Demand