Question
Metropolitan Hospital has estimated its average monthly bed needs, N, as: N=460+5X where X = time period (months); (January 2002 = 0) Assume that no
Metropolitan Hospital has estimated its average monthly bed needs, N, as:
N=460+5X
where X = time period (months); (January 2002 = 0)
Assume that no new hospital additions are expected in the area in the foreseeable future. The following monthly seasonal adjustment factors have been estimated, using data from the past five years:
Forecast Metropolitan's bed demand for January, April, July, November, and December 2007.
Month Adjustment Factor (%) Forecast
January +5 ______
April -15 ______
July +4 ______
November -5 _______
December -25 ______
Suppose the following actual and forecast values for June bed demands have been recorded.
Year Forecast Actual
2007 785 848
2006 725 776
2005 665 705
2004 605 635
2003 545 567
2002 485 500
What seasonal adjustment factor would you recommend be used in making future June forecasts?
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