• • • 4.13 As you can see in the following table, demand for heart transplant surgery at Washington General Hospital has increased steadily in the past few years:

The director of medical services predicted 6 years ago that demand in year 1 would be 41 surgeries.

a) Use exponential smoothing, first with a smoothing constant of .6 and then with one of .9, to develop forecasts for years 2 through 6.

b) Use a 3-year moving average to forecast demand in years 4, 5, and 6.

c) Use the trend projection (regression) model to forecast demand in years 1 through 6.

d) With MAD as the criterion, which of the four forecasting methods is best?

Transcribed Image Text:

YEAR 1 2 3 4 5 6 HEART TRANSPLANTS 45 50 52 56 58 ?