Question

In: Economics

If MAPE and MAD indicate different methods, how do you choose which method to use?


If MAPE and MAD indicate different methods, how do you choose which method to use? 

You always trust MAPE better. 

You aslways trust MAD better. 

You have to use your judgement. 

You can not choose a method.

You should not work on this specufuc project anymore

Solutions

Expert Solution

Answer : Option A is correct. You always trust MAPE better. It means that it is accurate forecast and less error has been shown by MAD. It shows better accuracy and perfection in presentable . Mostly companies adopted MAPE strategy in order to grab maximum accuracy in Forecasting.

Rahul Sunny answered 1 year ago
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