Question
As shown in the following table, demand for robotic-assisted surgeries at TechCare Hospital has increased at an irregular rate over the past few years: Year
As shown in the following table, demand for robotic-assisted surgeries at TechCare Hospital has increased at an irregular rate over the past few years:
Year | 1 | 2 | 3 | 4 | 5 | 6 |
Surgeries | 25 | 30 | 33 | 41 | 38 | 49 |
The director of medical services predicted 6 years ago that demand in year 1 would be 24 surgeries.
a) Use exponential smoothing with a smoothing constant of =0.4 , to develop forecasts for years 2 through 6. Calculate the Mean Absolute Percentage Error (MAPE) for this case.
b) Use trend-adjusted exponential smoothing to forecast demand for years 2 through 6 with smoothing constants of =0.4 and =0.7 . Assume that the initial trend adjustment is -3. Calculate the MAPE for this case.
c) With MAPE as the criterion, which of the two forecasting methods is best?
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