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Answer:
A. about 2.0%
Explanation:
The forecasted error for week 1 is 1%. The demand for week 1 is 50 while estimated demand or forecast was 49. The difference between the two values is 1. The forecasted demand for week 2 is 50 while actual demand for week 2 is 54. The difference between the forecast and actual value is 4. The difference in week 3 is 5. Mean absolute deviation is 6% which means there can be 6% standard deviation from the forecasted values.
The error in Mean Absolute Percentage would be as follows:
A). about 2.0%
What is the Mean Absolute Percentage?
Given that,
Week 1
The error in the forecast = 1%
Demand = 50
Forecasted demand = 49
The difference in the estimated demand and actual demand = 50 -49 = 1
Week 3
The error in the forecast = 1%
Demand = 58
Forecasted demand = 63
The difference in the estimated demand and actual demand = 63 - 58 = 5
Also,
Mean deviation [tex]= 6%[/tex]%
This implies that the standard deviation in the three values is of [tex]6[/tex]%.
∵ 2% is the error
Thus, option A is the correct answer.
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