Your manager is trying to determine what forecasting method to use based on the following data. Linear regression Month Demand SMA WMA 1 1 62 2 65 3 3 67 4 68 5 71 5 6 73 7 76 00 78 9 78 10 80 11 84 12 85 MAD MAPE a. The following graph shows the evolution of the above demand over time: 90 85 BO Sales 75 70 65 60 10 12 6 Month Based on the graph, which forecasting method do you recommend: simple moving average, weighted moving average or linear regression? Why? b. Calculate the three-month simple moving average forecast for periods 8-12 c. Calculate the three-month weighted moving average using weights 0.50,0.30, and 0.20 for pe- riods 8-12 d. The following analysis was obtained after using Regression Analysis with Excel SUMMARY OUTPUT Regression Statistics Multiple R 0.994755994 R Square 0.989539488 Adjusted R Square 0.988493437 Standard Error 0.800713551 Observations 12 Intercept X Variable 1 Coefficients 60.53030303 2.059440559 Standard Error 0.492805124 0.066959031 Lower 95% 59,43226479 1.910246541 Upper 95% 61.62834127 2.208634578 Lower 95.0% 59.43226479 1.910246541 Upper 95.0% 61.62834127 2.208634578 Please answer the following questions: - Indicate the dependent and independent variables. - Is assuming a linear dependency appropriate? - Give the equation of the regression line. - Use the line to calculate forecasts for the months 8-12. e. Calculate the MAD and MAPE for the forecasts made by each technique in periods 8-12. Which forecasting method is better