Question

If MAPE is the performance criterion chosen by the administration, which forecasting method should it choose?

Answer 1

If MAPE is the performance criterion chosen by the administration, they should choose the forecasting method with the lowest MAPE value.

Step-by-step explanation:

If MAPE is the performance criterion chosen by the administration, then the administration should choose the forecasting method with the lowest MAPE value. MAPE stands for Mean Absolute Percentage Error and it is a measure of forecasting accuracy. The lower the MAPE value, the better the forecast accuracy. For example, if one forecasting method has a MAPE of 5% and another has a MAPE of 10%, the method with the MAPE of 5% would be the preferred choice.