Based on the Information Shown Below, Develop Forecasts for June

question 13

Essay

Based on the information shown below, develop forecasts for June using both a two-period moving average model and an exponential smoothing model with α = 0.10. For the exponential smoothing model, assume the forecast for February was 800. $\begin{array}{|l|c|}\hline \text { Month } & \text { Actual Demand } \\\hline \text { February } & 850 \\\hline \text { March } & 900 \\\hline \text { April } & 975 \\\hline \text { May } & 950 \\\hline\end{array}$

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Definitions:

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in a market.

Inequities

Unfair, avoidable differences in treatment or opportunities across individuals or groups.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given period.

Equilibrium Price

The cost at which the amount of products offered matches the amount of products requested.