Which demand forecast value indicates the highest accuracy?
Understand the Problem
The question is asking to evaluate different demand forecast values based on their accuracy, specifically comparing DPA and MAPE metrics. We need to identify which value represents the highest level of accuracy among the options provided.
Answer
Lower MAPE values, ideally 10% or better, indicate the highest accuracy.
The final answer is a lower Mean Absolute Percentage Error (MAPE), ideally 10% or better, which indicates high forecast accuracy.
Answer for screen readers
The final answer is a lower Mean Absolute Percentage Error (MAPE), ideally 10% or better, which indicates high forecast accuracy.
More Information
MAPE is a popular metric for forecast accuracy, where a lower percentage means the forecast was close to the actual values, indicating high accuracy.
Tips
A common mistake is to focus solely on one metric, like MAPE, without considering the context of the business or industry, where other metrics may also be important.
Sources
- Mastering MAPE: How to Explain Forecast Accuracy - medium.com
- Calculating forecast accuracy & forecast error - EazyStock - eazystock.com
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