RAP Computers assembles personal computers from generic parts it purchases at a discount, and it sells the units by phone orders it receives from customers responding to the company’s ads in trade journals. The business has developed an exponential smoothing forecast model to forecast future computer demand. Actual demand for the company’s computers for the past 8 months as well as a forecast are shown in the following table:

a. Using a measure of forecast accuracy of your choice, ascertain whether the forecast appears to be accurate.
b. Determine whether a 3-month moving average would provide a betterforecast.

  • CreatedJuly 17, 2014
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