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: Year 1 2 3 4 5 Mileage 3,000 3,950 3,500 3,750 3,800 Part 2 a) Using a 2-year moving average, the forecast for year 6 = 37753775 miles (round your response to the nearest whole number). Part 3 b) If a 2-year moving average is used to make the forecast, the MAD based on this = enter your response here miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.)
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: Year 1 2 3 4 5 Mileage 3,000 3,950 3,500 3,750 3,800 Part 2 a) Using a 2-year moving average, the forecast for year 6 = 37753775 miles (round your response to the nearest whole number). Part 3 b) If a 2-year moving average is used to make the forecast, the MAD based on this = enter your response here miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.6: Moving Averages Models
Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...
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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:
|
Year
|
1
|
2
|
3
|
4
|
5
|
|
Mileage
|
3,000
|
3,950
|
3,500
|
3,750
|
3,800
|
Part 2
a) Using a 2-year moving average, the forecast for year 6 =
37753775
miles (round your response to the nearest whole number).Part 3
b) If a 2-year moving average is used to make the forecast, the MAD based on this =
enter your response here
miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.)Expert Solution
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Follow-up 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 driven during the past 5 years are as follows:
|
Year
|
1
|
2
|
3
|
4
|
5
|
|
Mileage
|
3,000
|
3,950
|
3,500
|
3,750
|
3,800
|
Part 2
a) Using a 2-year moving average, the forecast for year 6 =
37753775
miles (round your response to the nearest whole number).Part 3
b) If a 2-year moving average is used to make the forecast, the MAD based on this =
7575
miles (round your response to onedecimal place). (Hint: You will have only 3 years of matched data.)Part 4
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) =
37803780
miles (round your response to the nearest whole number).Part 5
The MAD for the forecast developed using a weighted 2-year moving average with weights of
0.40
and
0.60
=
96.796.7
miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.)Part 6
d) Using exponential smoothing with
α
=
0.40
and the forecast for year 1 being
3,000,
the forecast for year 6 =
enter your response here
miles (round your response to the nearest whole number).Solution
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