Please help with part C The Carbondalo Hospital is considoring the purchase of a

Question

Please help with part C The Carbondalo Hospital is considoring the purchase of a new ambulance. The decision will rest partly on the andicipated miloage to be driven next year. The miles driven during the past 5 years are as follows Year Mileage 3.0 00 4050 3,5003,800 3,800 a) Using a 2-year moving average, the forecast for year 6 3800 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 - 86.7 miles (round your response 3 years of matched data.) to one decimal place). (Hint: You will have only

Explanation / Answer

Weighted moving average for period 3

= 0.45x Mileage for period 1+ 0.55 x mileage for period 2

= 0.45x3000+0.55x4050 = 3577.5

In the same way values of other periods can also be determined.

Absolute deviation = I difference in actual data and forecast I

Mean absolute deviation = AD / No of periods

Year Mileage MA AD MAD 1 3000 2 4050 3 3500 3577.5 77.5 88.33 4 3800 3747.5 52.5 5 3800 3665 135

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---