Question: Can you help me solve C (I don't understand how they got 121.7) and D thank you The Carbondale Hospital is considering the purchase of
Can you help me solve C (I don't understand how they got 121.7) and D thank you
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 | 3,050 | 4,050 | 3,450 | 3,750 | 3,800 |
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 =
100 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 0.45 and 0.55 (the weight of 0.55 is for the most recent period) = 3777 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 0.45 and 0.55 =
121.7 miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.)
d) Using exponential smoothing with = 0.20 and the forecast for year 1 being 3,050, the forecast for year 6 =
__________ miles (round your response to the nearest whole number).
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