Use This Table to Answer the Following Question -What Is the Mean Absolute Percentage Error If the Forecasts

question 50

Multiple Choice

Use this table to answer the following question:
$\begin{array} { | c | c | } \hline \text { Period } & \text { Demand } \\\hline 1 & 173 \\\hline 2 & 177 \\\hline 3 & 180 \\\hline 4 & 151 \\\hline 5 & 168 \\\hline 6 & 184 \\\hline 7 & 198 \\\hline 8 & 191 \\\hline 9 & 167 \\\hline 10 & 177 \\\hline\end{array}$
-What is the mean absolute percentage error if the forecasts for periods 1-10 are in order, 176.6, 174.2, 176.1, 178.7, 160.4, 165.4, 177.7, 191.1, 191.0, and 175.2?

• A) 5.8
• B) 5.6
• C) 5.4
• D) 5.2

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Definitions:

Profit Margin

A financial ratio indicating the percentage of revenue that exceeds the costs associated with making or buying the goods sold.

DuPont Formula

A formula used to provide a detailed analysis of Return on Equity (ROE) by breaking it down into three major components: operating efficiency, asset use efficiency, and financial leverage.

Investment Turnover

A measure of a company's efficiency in using its investments in assets to generate sales revenue, calculated as sales divided by average total assets.

Profit Margin

A metric in finance that reveals the percent of sales revenue that remains after deducting the cost of goods sold, illustrating the profit-making ability of a business.