Question

CALCULATE THE MAD, MSE, AND MAPE ERRORS FOR THE FOLLOWING DATA. SHOW WORK TO RECEIVE CREDIT. Period Demand FORECASTED 1 940 938 2 946 948 3 942 944 4 946 943 5 950 948 6 955 957

Answer 1

Calculations for period 1

Error = Actual Demand - Forecast

Error = 940-938 = 2

| Error | = 2

Error Square = | Error | * | Error |  =  2*2 = 4

| % Error | = |Error|/Demand *100%

| % Error | = 2/ 940 *100% = 0.2127%

Calculations for period 2

Error = Actual Demand - Forecast

Error = 946-948 = -2

| Error | = | -2 | = 2

Error Square = | Error | * | Error |  =  2*2 = 4

| % Error | = |Error|/Demand *100%

| % Error | = 2/ 946*100% = 0.2114%

Calculations for period 3

Error = Actual Demand - Forecast

Error = 942-944 = -2

| Error | = | -2 | = 2

Error Square = | Error | * | Error |  =  2*2 = 4

| % Error | = |Error|/Demand *100%

| % Error | = 2/ 942*100% = 0.2123%

Calculations for period 4

Error = Actual Demand - Forecast

Error = 946-943 = -3

| Error | = | 3 | = 3

Error Square = | Error | * | Error |  = 3*3 = 9

| % Error | = |Error|/Demand *100%

| % Error | = 3/ 946*100% = 0.3171%

Calculations for period 5

Error = Actual Demand - Forecast

Error = 950-948 = 2

| Error | = 2

Error Square = | Error | * | Error |  =  2*2 = 4

| % Error | = |Error|/Demand *100%

| % Error | = 2/ 950 *100% = 0.2105%

Calculations for period 6

Error = Actual Demand - Forecast

Error = 955-957 = -2

| Error |= | -2 | = 2

Error Square = | Error | * | Error |  =  2*2 = 4

| % Error | = |Error|/Demand *100%

| % Error | = 2/ 955 *100% = 0.2094%

All above calculations summaarised belowin table:

Period	Demand	Forecast	Error	| Error |	Error square	| % Error |
1	940	938	2	2	4	0.2127%
2	946	948	-2	2	4	0.2114%
3	942	944	-2	2	4	0.2123%
4	946	943	3	3	9	0.3171%
5	950	948	2	2	4	0.2105%
6	955	957	-2	2	4	0.2094%

Mean Absolute Deviation (MAD) =

Mean Absolute Deviation (MAD) = (2+2+2+3+2+2)/6

Mean Absolute Deviation (MAD) = 13/6

Mean Absolute Deviation (MAD) = 2.1667

Mean Square Error (MSE) =

Mean Square Error (MSE)= (4+4+4+9+4+4)/6

Mean Square Error (MSE)=  29/6

Mean Square Error (MSE)= 4.8333

Mean Absolute Percent Error (MAPE) =

Mean Absolute Percent Error (MAPE) = (0.2127% + 0.2114% + 0.2123% + 0.3171% + 0.2105% +  0.2094%)/ 6

Mean Absolute Percent Error (MAPE) = 1.3734%/6

Mean Absolute Percent Error (MAPE) = 0.2289 %