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Former Member
Mar 07, 2010 at 09:38 PM

MAD Vs MAPE

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Can anyone please tell me What are the fundamental differences between applications of MAD versus MAPE, I am not asking the difference in these two in terms of thier formula, but what are the business or a statistical reasons behind using one over other ? I have a feeling that one of factors that could affect this decision depends on the level we are forecasting? Like MAPE being a better choice for Product groups /family or any aggregate level forecsating and MAD being suitable for product level forecasting ?

Please let me know if my knowledge of this is not correct or if there is more to just this.