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The Bonavista Patient Transfer Company is considering the purchase of a new ambulance. The decision will rest partly on the anticipated distance to be driven
The Bonavista Patient Transfer Company is considering the purchase of a new ambulance. The decision will rest partly on the anticipated distance to be driven next year. The kilometres driven during the past 5 years are as follows: 1 2 3 4 5 Year Distance (km) 3,100 3,950 3,500 3,750 3,750 a) Using a 2-year moving average, the forecast for year 6 = 3,750 kilometres (round your response to the nearest whole number). b) If a 2-year moving average is used to make the forecast, the MAD based on this = 58.37 kilometres (round your response to one decimal place). (Hint: You will have only 3 years of matched data.) c) The forecast for year 6 using a weighted 2-year moving average with weights of 0.40 and 0.60 (the weight of 0.60 is for the most recent year) = 3,750 kilometres (round your response to the nearest whole number). kilometres (round your response to one decimal The MAD for the forecast developed using a weighted 2-year moving average with weights of 0.40 and 0.60 = place). (Hint: You will have only 3 years of matched data.)
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