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1. As you can see in the following table, the demand for the heart transplant su

ID: 3310726 • Letter: 1

Question

1. As you can see in the following table, the demand for the heart transplant surgery at Washington General Hospital has decreased steadily in the past few years: Year Heart Transplants 60 58 56 52 50 40 a) Compute a 2-year moving average for years 3 thru 6. Compute MAD How do you interpret your answer in part (b)? b) c) 2. Using the data from problem 1, compute a 3-year weighted moving average for years 4 thru 6 in which heart transplant surgeries in the most recent year is given a weight of 6, and the surgeries in the other two years are each given a weight of 3. a) b) Compute the MAPE c) How do you interpret the answer in part(b)?

Explanation / Answer

(1)MA is moving averate and AD is absolute deivation , MAD is mean absolute deviation

(2)

MAPE is mean absolute % error

MAD and MAPE are use to compare to two methods and lower value is desirable.

year heart transplant 2-year MA AD 1 60 2 58 3 56 59 3=abs(56-59) 4 52 57 5=abs(52-57) 5 50 54 4=abs(50-54) 6 40 51 11=abs(40-51) sum= 23 (b) MAD= 23/4=5.75