Problem 2: Forecasting Methods (7 points) Below is the actual demand for an item over a 6-month period. Your boss wants to test two forecasting methods to see which method was better over this period. Month Actual Demand June 260 July 280 Aug 210 Sept 330 Oct 250 Nov 220 a) Forecast Sept-Dec using a three-month moving average. (2 points) b) Forecast Aug-Dec using a two-month weighted moving average. Use 0.8 for the weight for the most recent month, and 0.2 for the weight for the previous month. (2 points) c) Calculate the MAD for each forecast you created in parts a and b. (2 points) d) Using the more accurate forecast you identified in part c, what is your forecast for December? (1 point - you can leave the answer as a decimal) Problem 3: Forecast Accuracy (6 points) Use the following forecast and actuals to answer the questions below. Month Actual Demand Forecasted Demand 1582 1200 1986 1400 3 2258 2500 4 2967 3600 3894 4100 1 2 5 a) What is the MAPE for this forecast? (2 points) b) What is the tracking signal for each month? (4 points)