The Carbondale Hospital is considering the purchase of a new ambulance. The deci
ID: 3262203 • Letter: T
Question
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:
a) Using a 2-year moving average, the forecast for year 6 =
nothing
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 0.45 and 0.55 (the weight of 0.55 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 0.45 and 0.55 =
nothing
miles
(round
your response to one decimal place). (Hint: You will have only 3 years of matched data.)
d) Using exponential smoothing with = 0.20 and the forecast for year 1 being 3,050, the forecast for year 6 =
nothing
miles
(round
your response to the nearest whole number)
years & Mileage
1 yr, 3050
2yrs, 3950
3yrs,3400
4yrs,3850
5yrs, 3700
Explanation / Answer
a)
therefore forecast for year 6 = 3775
b) MAD =116.67
c)
from above: forecast for year 6 using a weighted 2-year moving average =3767.5
MAD =133.33
d)
forecast for year 6 = 3444.96
please revert for any clarification needed.
Year Mileage Forecast(F) |A-F| 1 3050 2 3950 3 3400 3500 100.00 4 3850 3675 175.00 5 3700 3625 75.00 6 3775 Total 350.00 Average 116.67Related Questions
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