What is horizon-wide MAPE in SAP BI-RA-PA - SAP Predictive Analytics?

SAP Term: horizon-wide MAPE

• Component: BI-RA-PA

• Component Name: SAP Predictive Analytics

• Description: Horizon-Wide Mean Absolute Percentage Error Quality indicator used for forecasting models. It is the mean of MAPE values observed over the entire training horizon. A value of zero indicates a perfect model while values above 1 indicate bad quality models. A value of 0.09 means that the model takes into account 91% of the signal or, in other words, the forecasting error model residue is 9%.

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• Key Concepts: 
  Horizon-wide MAPE (Mean Absolute Percentage Error) is a metric used to measure the accuracy of a predictive model. It is calculated by taking the average of the absolute percentage errors of all predictions made by the model. The horizon-wide MAPE is used in SAP Predictive Analytics, a component of the Business Intelligence (BI) suite, to measure the accuracy of predictive models. 
  
  How to use it: 
  To calculate the horizon-wide MAPE, first calculate the absolute percentage error for each prediction made by the model. This is done by taking the absolute value of the difference between the predicted value and the actual value, divided by the actual value. Then, take the average of all these absolute percentage errors to get the horizon-wide MAPE. 
  
  Tips & Tricks: 
  The lower the horizon-wide MAPE, the more accurate your predictive model is. Therefore, it is important to strive for a low horizon-wide MAPE when building predictive models. Additionally, it is important to note that this metric only measures accuracy and does not take into account other factors such as bias or overfitting. 
  
  Related Information: 
  The horizon-wide MAPE is just one of many metrics used to measure predictive model accuracy. Other metrics include root mean squared error (RMSE), mean absolute error (MAE), and coefficient of determination (R2). Additionally, there are other components of SAP's Business Intelligence suite that can be used for predictive analytics, such as SAP HANA and SAP Data Services.