What is the formula for calculating percent error when estimating the sales of a product compared to the actual sales?
To calculate the percent error when estimating the sales of a product compared to the actual sales, you can use the following formula:
Percent Error = [(Estimated Sales - Actual Sales) / Actual Sales] x 100
Here's a step-by-step breakdown of how to calculate percent error:
1. Start by subtracting the actual sales from the estimated sales. This will give you the difference between the estimated and actual sales.
2. Divide the difference obtained in step 1 by the actual sales.
3. Multiply the result from step 2 by 100 to convert it to a percentage.
The resulting value will represent the percent error between the estimated sales and the actual sales of the product.