As you can see in the following table, demand for heart transplant surgery at TRUECARE Hospital has increased steadily in the past five years: YEAR 1 3 4 6 2 50 Heart transplants 45 ? The director of medical services predicted 6 years ago that demand in year 1 would be 41 surgeries. Based on the above information, answer the questions below: a) Using exponential smoothing with a smoothing constant of 0.4, calculate the forecasts for years 2 through 6. (8 POINTS) b) Calculate the forecast error using MAD, for years between 1-5. (4 POINTS) c) How can the director of medical services reduce the forecast error? (3 POINTS) 1. 52 56 5 58

The director of medical services predicted 6 years ago that demand in year 1 would be 41 surgeries. Based on the above information, answer the questions below: a) Using exponential smoothing with a smoothing constant of 0,4 , calculate the forecasts for years 2 through 6 . (8 POINTS) b) Calculate the forecast error using MAD, for years between 1-5. (4 POINTS) c) How can the director of medical services reduce the forecast error? (3 POINTS)