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Classical ML, validation, metrics, interpretation, debugging · insight-0144

Expect MAPE-selected models to under-forecast and check bias before adopting them

Evidence type
practitioner heuristic
Difficulty
medium
Roles
Data scientist, Data analyst
Industries
retail, logistics, aviation

Summary: situation, action, reason, boundary

  1. Situation

    You choose between models or tune a model by minimizing MAPE on positive targets.

  2. Action

    Report mean signed error alongside MAPE, choose the metric from the decision's cost asymmetry, and prefer a quantile or cost-weighted loss when under- and over-prediction cost differently.

  3. Reason

    For a positive actual, an under-forecast's percentage error is capped at 100%, while an over-forecast's is unbounded, so minimizing MAPE rewards low forecasts.

  4. Boundary

    Demand, capacity, staffing and inventory forecasts evaluated with percentage errors.

Symptom or risk

The winner systematically predicts low, causing shortages, under-capacity or spill of demand.

Exceptions

If under-forecasting genuinely costs less than over-forecasting, the bias may be acceptable, but make it a stated choice.

Trade-offs

Signed-error tracking adds a second number to explain but prevents silent bias.

Pitfalls

Comparing MAPE across models that were trained on different losses without examining their bias.

Example

Hypothetical actual of 100: forecasting 50 scores 50% error, forecasting 150 also 50%, forecasting 300 scores 200%, while forecasting 0 is capped at 100%.

Lessons and concepts