The Carbondale Hospital is considering the purchase of a new ambulance. The deci
ID: 391408 • Letter: T
Question
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 drive uring the past 5 years are as follows Year Mileage 3,000 3,950 3,450 3,700 a) Using a 2-year moving average, the forecast for year 6-3725 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- 58.3 miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.) ) The forecast for year 6 using a weighted 2-year moving average with weights of 0.40 and o.60 (the weight of 0.60 is for the most recent period)- 3720 miles (round your response to the nearest whole number) g a weighted 2-year moving average with weights of 0.40 and 0 60-mles (round your response to one decimal place) The MAD for the forecast developed usin (Hint: You will have only 3 years of matched data.)Explanation / Answer
A
Forecast for the year-6 = (3750+3700)/2 = 3725
B.
MAD = Mean of the sum of absolute deviations
MAD = (25+50+100)/3 = 58.3
C.
Forecast for the year-6 = (.4*3750 + .60*3700)
Forecast for the year-6 = 3720
MAD = (120+100+70)/3 = 96.7
Year 1 2 3 4 5 Mileage 3000 3950 3450 3750 3700 2 year MA forecast 3475 3700 3600 Absolute deviations 25 50 100