In the theory section, we mention how sMAPE is known to treat overestimation and underestimation unequally.
Let's consider the following scenario. We have true targets, , and for simplicity, .
We have two models, and , which produced the following predictions: and .
Calculate their sMAPE and answer the following question: which model showed greater performance based on the sMAPE? Your answer function looks like this:
Round the answer up to the third decimal. Use the modified sMAPE formula (the one that outputs in the range).