Business, 22.02.2020 00:33 Guest4747

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

3,100 (1)

4,000 (2)

3,500 (3)

3,800(4)

3,800(5)

a) Using a 2-year moving average, the forecast for year 6 = 3800

miles (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 = nothing

miles (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) = nothing

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

= nothing

miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.)

d) Using exponential smoothing with alpha

= 0.50

and the forecast for year 1 being 3,000

,

the forecast for year 6 = nothing

miles (round your response to the nearest whole number).

Answers: 3

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