Asked by Jallisa Jackson on Apr 25, 2024

The measure of forecast error where the average absolute error of each forecast is shown as a percentage of demand is

A) mean squared error (MSE) .
B) mean absolute percentage error (MAPE) .
C) bias.
D) the tracking signal.

Forecast Error

The difference between the actual demand and the forecasted demand, indicating the accuracy of forecasting methods.

  • Familiarize oneself with the essential parameters of forecasting errors: MSE, MAD, and MAPE.