1. A manager has been using a certain technique to forecast demand for project management software at her store. Actual demand and her corresponding predictions are shown below:

MonthActual DemandManager's ForecastMarch450450April420500May340450June480400July380450

1. Calculate the managers forecast error for each month. Answer what is the error of May?
2. What is the mean error (ME)?
3. What is the mean squared error (MSE)?
4. What is the mean absolute deviation (MAD)?
5. What is the tracking signal for these five months of forecasting?
6. If the manager had used a 3-month moving average instead of her technique, what would have been her forecast for July?
7. If the manager had used simple exponential smoothing with = 0.2 instead of her technique, what would the forecast for August be, assuming that simple exponential smoothing had produced a perfectly accurate forecast in March?