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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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