Often companies create forecasts for demand of their products and then use MAPE as a way to measure the accuracy of the forecasts. Let’s explore these two factors in depth. The MAPE value compared to a simple forecasting model.Obviously the lower the value for MAPE the better, but there is no specific value that you can call “good” or “bad.” It depends on a couple factors: One of the most common questions people have when using this metric is: For example, a MAPE value of 8% means that the average difference between the forecasted value and the actual value is 8%. MAPE is commonly used because it’s easy to interpret and explain. The formula to calculate MAPE is as follows: One of the most common metrics used to measure the forecasting accuracy of a model is MAPE, which stands for mean absolute percentage error.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
March 2023
Categories |