If we divide by Actuals, and when actuals are zero, MAPE is undefined (excel gives #DIV/zero error). What to do?
When actuals are zero, MAPE is infinite. By definition, forecast error can be greater than 100%. However, accuracy cannot be below zero. Forecast Accuracy = max (1 – forecast error, 0) If Actuals are 25 and forecast is 100, then error is 75 implying a 300% error. But accuracy is always zero for cases where error is higher than 100%. You can use the ISERROR function in excel to overcome the DivisionByZero error. Although this is an excel workaround, this actually preserves the impact of the actual being zero in calculating the total forecast error. See the excel accuracy template available in the downloads section!
Related Questions
- When I open the zip file, it shows zero files or it gives me error message "The Compressed (zipped) Folder is invalid or corrupted"??
- When I try to add ingredients to a new recipe, I get "Run-time Error 30009 – Invalid Row Number". What gives?
- I received an error message "Error: Empty variables; attempt to divide by zero." Whats wrong?
