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

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 4,050 3.400 3,800 3,700

a) Using a 2-year moving average, the forecast for year 6  = _______ miles (round your response to one decimal place).

b) If a 2-year moving average is used to make the forecast, the MAD based on this = _______  miles

c) The forecast for year 6 using a weighted 2-year moving average with weights of 0.35 and 0.65 (the weight of 0.65 is for the most recent period) =_______  (round your response to the nearest whole number).

The MAD for the forecast developed using a weighted 2-year moving average with weights of 0.35 and 0.65= _______ miles

d) Using exponential smoothing with α = 0.40 and the forecast for year 1 being 3.100, the forecast for year 6 = _______  miles

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