Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 10 months. The forecast and actual sales are as follows:

Month Sales Forecast 1 Forecast 2

1 840 815 780

2 835 795 820

3 850 785 790

4 790 815 845

5 780 790 800

6 835 795 821

7 765 765 760

8 850 820 795

9 835 820 800

10 790 800 800

a. Compute the MSE and MAD for each forecast. (Round your answers to 2 decimal places.)

Forecast 1 MSE_____ MAD_____

Forecast 2 MSE_____ MAD_____

b. Compute MAPE for each forecast. (Round your intermediate calculations to 5 decimal places and answers to 4 decimal places.)

MAPE F1_____%

MAPE F2_____%

c. Provide the naive forecast for periods 2 through 11 using the given sales data. Compute each of the following; (1) MSE, (2) MAD, (3) tracking signal at month 10, and (4) 2s control limits. (Round your answers to 2 decimal places.)

MSE_____

MAD____

Tracking signal_____

Control limits_____