Question
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 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:
Year | 1 | 2 | 3 | 4 | 5 |
Mileage | 3,050 | 4,050 | 3,450 | 3,750 | 3,750 |
a)Using a 2-year moving average, the forecast for year 6 (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 (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 period) = miles (round your response to the nearest whole number).? The MAD for the forecast developed using a weighted 2-year moving average with weights of 0.40 and 0.60 (round your response to one decimal place). (Hint: You will have only 3 years of matched data.)?
d) Using exponential smoothing with alpha ? 0.30 and the forecast for year 1 being 3,050, the forecast for year 6 (round your response to the nearest whole number).?
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