Question: 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

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.

Month Demand Forecast March April May June July August September October November 120 110 150 130 160 165 140 155 120.0 116.0 129.6 129.7 141.8 151.1 146.7 150.0

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