Problem 6 - A manager is considering changing to a new forecasting technique. In order to assess the new technique the manager calculated what the forecast would have generated on the last 12 months of data. The table below shows the last 12 months of demand and what the forecast would have projected. Perform the necessary calculations and answer the following questions. Calculate tracking signal values. Is there any evidence this New Forecast should not be used? Explain your answer 1. Does the New technique appear to be Biased. If so how is it biased? 2 Calculate tracking signal values. Based on your findings do you recommend using this technique? Explain your answer

\begin{tabular}{ccc} Period & Actual Demand & New Forecast Demand \\ \hline 1 & 720 & 620 \\ 2 & 650 & 750 \\ 3 & 680 & 950 \\ 4 & 750 & 1020 \\ 5 & 950 & 1030 \\ 6 & 1150 & 1130 \\ 7 & 1480 & 1200 \\ 8 & 1750 & 1400 \\ 9 & 1620 & 1100 \\ 10 & 1200 & 980 \\ 11 & 900 & 900 \\ 12 & 820 & 880 \end{tabular}