Question: Problem 4.5 e Question Help The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage

Problem 4.5 e Question Help The Carbondale

Problem 4.5 e Question Help 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: 4 Year Mileage 1 3,050 2 4,050 3 3,450 5 3,800 3,850 a) Using a 2-year moving average, the forecast for year 6 = 3825 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 = 116.7 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) = 3820 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 = 156.7 miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.) d) Using exponential smoothing with a = 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). Enter your answer in the answer box and then click Check

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