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 Mileage 1 3,000 2 4,000 3 3,400 4 3,800 5 3,750 a) Using a 2-year moving average, the forecast for year 6 = 3775 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 = 116.67 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 0.40 and 0.60 (the weight of 0.60 is for the most recent period) = 3770 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 0.40 and 0.60 = miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.)

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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
Mileage
1
3,000
2
4,000
3
3,400
4
3,800
5
3,750
a) Using a 2-year moving average, the forecast for year 6 = 3775 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 = 116.67 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 0.40 and 0.60 (the weight of 0.60 is for the most recent period) =
3770 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 0.40 and 0.60= miles (round your response to one
decimal place). (Hint: You will have only 3 years of matched data.)
Transcribed Image Text: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 Mileage 1 3,000 2 4,000 3 3,400 4 3,800 5 3,750 a) Using a 2-year moving average, the forecast for year 6 = 3775 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 = 116.67 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 0.40 and 0.60 (the weight of 0.60 is for the most recent period) = 3770 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 0.40 and 0.60= miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.)
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