Question

Using the data below, what is the value of the absolute percent error for week 4?
Week Time Series Value Forecast
1 4
2 7 8.00
3 5 7.00
4 4 8.00
5 3 3.00

Answer 1

To calculate the absolute percent error for week 4, you can use the formula:

\[
\text{Absolute Percent Error} = \left| \frac{\text{Actual Value} - \text{Forecast}}{\text{Actual Value}} \right| \times 100\%
\]

For week 4, the actual value is 4 and the forecast is 8.00.

Plugging in the numbers:

\[
\text{Absolute Percent Error} = \left| \frac{4 - 8.00}{4} \right| \times 100\%
\]

Calculating the difference:

\[
4 - 8.00 = -4
\]

Now plug that into the formula:

\[
\text{Absolute Percent Error} = \left| \frac{-4}{4} \right| \times 100\% = \left| -1 \right| \times 100\% = 1 \times 100\% = 100\%
\]

Thus, the absolute percent error for week 4 is **100%**.