The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly...

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The Carbondale Hospital is considering the purchase of a newambulance. The decision will rest partly on the anticipated mileageto be driven next year. The miles driven during the past 5 yearsare as? follows:

???????????????????????????????????????????????????????????????????????????????????????????????????????????????  

Year

1

2

3

4

5

Mileage

3,000

4,050

3,400

3,750

3,700

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

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? =

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

?c) The forecast for year 6 using a weighted? 2-year movingaverage with weights of 0.45 and 0.55 ?(the weight of 0.55 is forthe most recent? period) =

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

The MAD for the forecast developed using a weighted? 2-yearmoving average with weights of 0.45 and 0.55 ?=

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

?d) Using exponential smoothing with ? = 0.30 and the forecastfor year 1 being 3,050?, the forecast for year 6? =

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

Answer & Explanation Solved by verified expert
4.3 Ratings (619 Votes)
Answer a Year Mileage Forecast 1 3000 2 4050 3 3400 4 3750 5 3700 6 3725 Forecast of year 6 Mileage for Year 4 Mileage for Year 52 375037002 3725 miles Answer b Year Mileage Forecast Errors Absolute Errors T At Ft et AtFt et 1 3000 2 4050 3 3400 3525 125 125 4    See Answer
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