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Module 2A (chapter 4) Homework Score: 0 of 10 pts Problem 4.5 3 of 8 (0 complete) Save HW Score: 0%, 0 of 40 pts
Module 2A (chapter 4) Homework Score: 0 of 10 pts Problem 4.5 3 of 8 (0 complete) Save HW Score: 0%, 0 of 40 pts Question Help The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the past 5 years are as follows: nline n Year Mileage 0 1 3,000 2 3 4 5 4,050 3,500 3,850 3,750 a) Using a 2-year moving average, the forecast for year 6 miles (round your response to the nearest whole number). b) Find the MAD based on the 2-year moving average forecast in part (a). The value of MAD is computed by taking the sum of the absolute values of the individual forecast errors (deviations) and dividing by the number of periods of data (n): Actual - Forecast c) Use a weighted 2-year moving average with weights of 0.40 and 0.60 to forecast next year's mileage. (The weight of 0.60 is for the most recent year.) A weighted moving average may be expressed mathematically as: (Weight for period n)(Demand in period n) Weighted moving average- Weights
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