7) The Dominguez Hills Company has the following forecasts generated by two forecasting methods. Actual sales for the same time periods are shown below:

YEAR	SALES	FORECAST 1	FORECAST 2
1	895	875	867
2	875	902	883
3	910	892	906
4	840	866	868
5	865	850	888
6	900	917	908
7	845	825	820
8	890	868	885

Compute the tracking signal for each forecasting method. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter a negative value, if any.

Tracking signal (method 1):

Tracking signal (method 2):

Why is tracking signal important in assessing the performance of a forecasting model?

If the tracking signal falls ______ preset control limits, there is a bias problem with the forecasting method.

Assuming that the control limit for the tracking signal is 4, the first forecasting method _____ within the limits and the second forecasting method --_____ within the limits.