Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The number of heart surgeries performed at Heartville General Hospital has increased steadily over the past several years. The hospital's administration is seeking the
The number of heart surgeries performed at Heartville General Hospital has increased steadily over the past several years. The hospital's administration is seeking the best method to forecast the demand for such surgeries in year 6. The data for the past five years are shown below. Year 1 2 3 4 5 Demand 41 47 51 55 62 The hospital's administration is considering the following forecasting methods. Begin error measurement in year 3, so all methods are compared for the same years. i. Exponential smoothing, with a = 0.6. Let the initial forecast for year 1 be 41, the same as the actual demand. ii. Exponential smoothing, with a = 0.9. Let the initial forecast for year 1 be 41, the same as the actual demand. iii. Trend projection with regression. iv. Two-year moving average. v. Two-year weighted moving average, using weights 0.6 and 0.4, with the more recent data given more weight. If MAD is the performance criterion chosen by the administration, which forecasting method should it choose? If MSE is the performance criterion chosen by the administration, which forecasting method should it choose? If MAPE is the performance criterion chosen by the administration, which forecasting method should it choose?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started