Eagle is retailer of office supplies. The monthly retail demand for a product is provided below from January to October 2016.

a. Use the naïve method to forecast the demand for November and December 2016.
b. Use the moving average method with S periods to forecast the demand for Number and December 2016.
c. Use the exponential smoothing method with smoothing constant 0.8 to forecast the demand for November and December 2016. Initialize the forecasting method using the actual demand in January 2015.
d. Fit a trend ne to the demand data from January 2015 to December 2015. What is the trend line equation?
e. What is the forecasted demand for November and December 2016 f you use this trend Ire equation?
f. How reliable s this forecast from a statistical perspective?
g. Compute the MAD of the trend line method used in part (d). Use the forecasts from January 2016 to October 2016 to compute the MAD of the method.
h. What is the interpretation of MAD?
i. Explain clearly why it is important to compute and track forecast accuracy.

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DEMAND DATA Year Month 2015 2016 January 616 758 February 832 974 March 898 940 April 1106 964 1072 May 880 1016 988 June July 912 1004 August 828 870 September 894 1036 1018 October 850 November 1010 December 969