Question 1 (10 points) The historical demand for life insurance policies from the Mutual Insurance Company in Toronto, is given below: (10 marks) Month A tual Demand Weighted Moving Average Forecast MAD WMA Exponen. MAD Method Smoothing Exponential Forecast method 28 24 January February March April May 17 19 22 a. Using a 2 period weighted moving average, with weights of 0.7, 0.3, calculate the forecast for as many periods as possible. Insert your forecast figures in the above table Hint: The highest weight is for the most recent period. (4 marks) b) Using the exponential smoothing method with Alpha -0.7. Calculate the forecast for as many periods as possible. Insert your forecast figures in the above table. Assume that the forecast for January is 24. (4 marks) Ft = Ft-1 + a(At-1. Fl-1); c. Using the MAD as your criterion, which of the forecasts is best? (2 marks)