Question 1 A high-tech company wants to forecast the demand for their Kindle e-readers (in 000), based on the data below. (2 marks) Month Demand (000s) 1 1175 2 1225 3 1201 4 1225 5 1195 6 1250 7 1260 8 1224 9 1275 10 1289 11 1321 12 1300 13 1290 14 15 1322 1312 1.1 The company wants to choose a forecasting method for its data and considers Simple Moving Average (4 period and 7 period) and Weighted Moving Average (4 period with w,-0.4, w2 0.3, w = 0.2 and W = 0.1). 1.1.1 Using the above forecasting methods, forecast demand till month 15. 1.2 Make a scatter plot of the forecasts obtained with the three methods (4 and 7 period simple moving average and 4 period weighted moving average), together with the actual demand. Comment on the graphs obtained. 1.3 For each of the three methods above, calculate MAD and MAPE. Comment on these values. Which forecasting method should you choose? Why?