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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