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

Mileage3,0004,0503,4003,8503,700

1.Using a 2-year moving average, what is the forecast for year 6?

2.If a 2-year moving average is used to make the forecast, what is the MAD based on this?

3.The forecast for year 6 using a weighted 2-year moving average with weights of 0.45 and 0.55 (the weight of 0.55 is for the most recent period) = how many miles?

4.The MAD for the forecast developed using a weighted 2-year moving average with weights of 0.45 and 0.55 = how many miles?

5.Using exponential smoothing with alpha = 0.50 and the forecast for year 1 being 3 comma 000, the forecast for year 6 = how many miles?