The Carbondale Hospital is considering the purchase of a new ambulance. The deci

Question

The Carbondale Hospital is considering the purchase of a new ambulance. The decision wll rest partly on te amopated mieage o bedn en net The nesaven dngh" pass ws areas Mileage 3.100 4,000 3450 3850 3,800 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 this125 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 worted 2-year moving average with weights 0,045 and 0.55 (the wegrt of OSSiste mest ecent pe on--pandy eso anese-na een

Explanation / Answer

C) Using a two period weighted moving average method the forecast for a period is calculated as the sum of the product of the actual value and their respective weight for the previous two periods.

So forecast for year 6 = (0.45x3850) + (0.55x3800)

= 1732.5 + 2090

= 3822.5 or rounded to 3823 miles

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