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DUAL LINE CHART: Actual vs. Forecasted Monthly Sales (Units) | Jan: 18,500 actual vs 19,200 forecast | Feb: 21,300 vs 20,800 | Mar: 19,800 vs 19,500 | Apr: 23,400 vs 22,100 | May: 22,100 vs 23,500 | Jun: 24,800 vs 24,200. Calculate the Mean Absolute Percentage Error (MAPE) for the forecast accuracy.

GMAT · 2021 · Data Insights
Question:
DUAL LINE CHART: Actual vs. Forecasted Monthly Sales (Units) | Jan: 18,500 actual vs 19,200 forecast | Feb: 21,300 vs 20,800 | Mar: 19,800 vs 19,500 | Apr: 23,400 vs 22,100 | May: 22,100 vs 23,500 | Jun: 24,800 vs 24,200. Calculate the Mean Absolute Percentage Error (MAPE) for the forecast accuracy.
Question Image

Options

(A) 3.8%
(B) 4.2%
(C) 4.6%
(D) 5.1%
(E) 5.5%
Answer: (A) 3.8%

Explanation:
Calculate absolute % error each month: Jan = |18,500-19,200|/18,500 = 3.78%; Feb = |21,300-20,800|/21,300 = 2.35%; Mar = |19,800-19,500|/19,800 = 1.52%; Apr = |23,400-22,100|/23,400 = 5.56%; May = |22,100-23,500|/22,100 = 6.33%; Jun = |24,800-24,200|/24,800 = 2.42%. MAPE = (3.78 + 2.35 + 1.52 + 5.56 + 6.33 + 2.42)/6 = 21.96/6 = 3.66%. Closest to 3.8%.

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