Evaluating Forecasting Models with MAPE

Consider a time-series model that has been fitted to historical data to forecast future values. The model has provided predictions, and you are tasked with evaluating its performance. You decide to assess the model's accuracy by calculating the Mean Absolute Percentage Error (MAPE) based on the predicted and actual values obtained from this model.

To compute MAPE, you would use the formula:

$$ MAPE = rac{1}{n} imes rac{ ext{sum}(| ext{Actual}_i - ext{Forecast}_i|)}{| ext{Actual}_i|} $$

Where $n$ is the number of observations, $ ext{Actual}_i$ is the actual value, and $ ext{Forecast}_i$ is the predicted value.

Which of the following statements is TRUE regarding the evaluation of forecasting models using MAPE?