Based on the Information Shown Below, Develop Forecasts for June $\alpha$

question 3

Essay

Based on the information shown below, develop forecasts for June using both a 2-period moving average model and an exponential smoothing model with $\alpha$ = 0.10. For the exponential smoothing model, assume the forecast for February was 800.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

High-profitability

Refers to the ability of a business or investment to generate earnings significantly above its costs and expenses.

High-loyalty

A customer's strong allegiance or attachment to a brand, product, or company, often reflected in repeat business and positive word-of-mouth.

Communication Investments

The allocation of resources towards marketing communication channels aiming to promote a brand or product.