Question

What is the mean absolute percentage error of the forecast for march found by the exponential smoothing method with a smoothing constant of 0. 3?

Answers

  1. The value of the mean absolute percentage error of the forecast for march found by the exponential smoothing method with a smoothing constant of 0. 3 is  16.94%

    How to solve for the  mean absolute percentage error

    The equation is given as
    ∝At + (1-∝) Ft
    The value for Alpha = 0.7
    1 – ∝ = 1 – 0.7
    = 0.3
    Forecast in match = 62
    Ft = 51. 5
    the difference = 62 – 51.5
    = 10.5
    The error = 10.5/62 * 100
    = 16.94%
    Hence the value of the  mean absolute percentage error of the forecast for march found by the exponential smoothing method with a smoothing constant of 0. 3 is  16.94%

    Complete question

    The past demand data shown below can be regarded as stationary.
    Month Demand
    January
    50
    February
    55
    March
    62
    April
    45
    What is the mean absolute percentage error of the forecast for March found by the exponential smoothing method with a smoothing constant of 0.3?
    O a. 14.68%
    Ob. 16.94%
    O c. 12.57%
    Od. 11.33%
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