MAPE Education Abbreviation

Mean Absolute Percentage Error

Mean Absolute Percentage Error (MAPE) is a statistical measure used to calculate the average percentage difference between actual and predicted values, and it is sometimes referred to as mean bias percentage. MAPE is calculated as:

MAPE = (1/n) * Σ(|(Actual Value - Predicted Value)/Actual Value|) * 100%

where n is the number of observations.

MAPE provides an indication of the magnitude of the forecasting error in terms of the percentage of the actual value. A lower MAPE value indicates better forecasting accuracy.

Bias, on the other hand, refers to the systematic difference between the average of the forecasted values and the actual values. A forecast model that is biased tends to consistently overestimate or underestimate the actual values. A measure of bias can be calculated as the difference between the average forecasted value and the average actual value.