Question: The hospital's administration is considering the following forecasting methods. Begin error measurement in year 3 , so all methods are compared for the same years.

The hospital's administration is considering the following forecasting methods. Begin error measurement in year 3 , so all methods are compared for the same years. i. Exponential smoothing, with =0.6. Let the initial forecast for year 1 be 42 , the same as the actual demand. ii. Exponential smoothing, with =0.9. Let the initial forecast for year 1 be 42 , the same as the actual demand. iii. Trend projection with regression. iv. Two-year moving average. v. Two-year weighted moving average, using weights 0.6 and 0.4 , with the more recent data given more weight. If MAD is the performance criterion chosen by the administration, which forecasting method should it choose? Exponential smoothing with =0.6 Exponential smoothing with =0.9 Trend projection with regression Two-year moving average Two-year weighted moving average
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
