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What information does the MAD and MAPE provide to a manager?
Vasantvpatel
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How can you compare two forecasting methods?
You can compare forecasting methods by one of these methods: 1- MAD(mean absolute deviation) 2-MSE (mean square error) 3-MAPE(mean absolute percentage error) Notes: 1-MAD is the preferred method since it does not require squaring the errors and this is the only difference between MAD and MSE . 2-If you want to relate the error relative to the actual demand use MAPE that is because in MAPE you will divide the error by the actual demand.
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For linear trend analysis what does mape mad and msd mean and what are they used for?
MAPE (mean absolute percentage error) Measures the accuracy of fitted time series values. It expresses accuracy as a percentage. MAD (mean absolute deviation) Measures the accuracy of fitted time series values. It expresses accuracy in the same units as the data, which helps conceptualize the amount of error MSD (mean squared deviation) Measures the accuracy of fitted time series values. MSD is always computed using the same denominator (the number of forecasts) regardless of the model, so you can compare MSD values across models and therefore you can compare the accuracy of two different models. The trend analysis procedure also displays, along with the graph, three measures to help you determine the accuracy of the fitted values: MAPE , MAD , and MSD . The three measures are not very informative by themselves, but they are used to compare the fits obtained by using different trend models. For all three measures, smaller values generally indicate a better fitting model.
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