The Carbondale Hospital is considering the purchase of a new ambulance. The deci

Question

The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest party on the anticipated mileage to be driven next year The miles driven during the past 5 years are as follows Year Mileage 3,000 3,450 3.750 3,700 a) Using a 2-year moving average, the forecast for year 6 3725 miles (round your response to the nearest whole number b) f a 2-year moving average is used to make the forecast,the MAD based on this 58.3 miles (round your response to one decimal place). (Hint: You well have only 3 years of matched data c) The forecast for year 6 using a weighted 2-year moving average with weights of 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- 96.7 Hint: You will have only 3 years of matched data) miles (round your response to one decimal place). with a -040 and the forecast for year 1 being 3,000, the forecast for year 6miles (round your response to the nearest whole number).

Explanation / Answer

D.

a= alpha

Ft = Dt-1 * a +(1-a)*Ft-1

So F2 = 3000 * 0.4 + .6 *3000 = 3000

F3 = 3950 * 0.4 + .6 *3000 = 3380

F4 = 3450 * 0.4 + .6 *3380 = 3408

F5 = 3750 * 0.4 + .6 *3408 = 3544.8

F6 = 3700 * 0.4 + .6 *3544.8 = 3606.88 = 3607 Ans

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