The Arnold 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 five years are as follow:

Year

Mileage

1

3000

2

4000

3

3400

4

3800

5

37000

a.Forecast the mileage for next year (6year) using a 2-years moving average (4 Marks)

b.Find the MAD based on the 2 years moving average (3 Marks)

c.Compute the forecast for year 6 using the exponential smoothing, an initial forecast for year 1of 3000 miles and = .5 (3 Marks)