🟪 1-Minute Summary

MAPE expresses error as a percentage of actual values: (100/n) * Σ|actual - predicted|/|actual|. Useful when relative error matters more than absolute error. Pros: scale-independent, interpretable. Cons: undefined when actual = 0, asymmetric (over-predictions penalized less), biased toward low forecasts. Use for business metrics (sales, revenue) where % error is meaningful.


🟦 Core Notes (Must-Know)

Formula

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Interpretation

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When to Use MAPE

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Limitations

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🟨 Interview Triggers (What Interviewers Actually Test)

Common Interview Questions

  1. “When would you use MAPE over RMSE?”

    • [Answer: When relative error matters, comparing across scales]
  2. “What’s a major limitation of MAPE?”

    • [Answer: Undefined when actual = 0, asymmetric]

🟥 Common Mistakes (Traps to Avoid)

Mistake 1: Using MAPE when data contains zeros

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🟩 Mini Example (Quick Application)

Scenario

[Sales forecast evaluation]

Solution

import numpy as np

def mape(actual, predicted):
    return np.mean(np.abs((actual - predicted) / actual)) * 100

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