How do you calculate WAPE?

Answer 1

WAPE, or Weighted Absolute Percentage Error, is calculated by taking the sum of the absolute errors divided by the actual values, weighted by those actual values. The formula is: ( \text{WAPE} = \frac{\sum |A_i - F_i|}{\sum A_i} \times 100 ), where ( A_i ) represents the actual values and ( F_i ) represents the forecasted values. This metric provides a percentage that indicates the accuracy of forecasts, considering the size of the actual values. It is particularly useful when dealing with datasets of varying magnitudes.