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

question 59

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.
$\begin{array}{cc}\text { Month } & \text { Actual Demand } \\\hline \text { February } & 850 \\\text { March } & 900 \\\text { April } & 975 \\\text { May } & 950\end{array}$

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Definitions:

Unit Change

A change in the independent variable by one unit and its effect on the dependent variable, often analyzed in regression models or experiments to understand causal relationships.

Total Variation

In statistics, a measure of the overall variability in a dataset or the total amount by which values in a data set differ from the mean.

SSR

Sum of Squares due to Regression, a measure used in statistical models to quantify how well the model explains the variability of the data.

SSE

The sum of squared errors between observed and predicted values in regression analysis, indicating the discrepancy between data points and the regression line.