please answer witnin 30 minutes The number of heart surgeries performed at Heartville General Hospital has increased steadily over the past several years. The hospital's administration is seeking the best method to forecast the demand for such surgeries in year 6. The data for the past five years are shown below.4YearDemand50535661The 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 x = 0.6. Let the initial forecast for year 1 be 43, the same as the actual demand.ii. Exponential smoothing, with = 0.9. Let the initial forecast for year 1 be 43, 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? Trend projection with regressionIf MSE is the performance criterion chosen by the administration, which forecasting method should it choose?Exponential smoothing with a=0.6Exponential smoothing with a = 0.9Trend projection with regressionTwo-year moving averageTwo-year weighted moving average

Exponential smoothing is often utilized for the analysis of time-series data. Exponential smoothing…

The number of heart surgeries performed at Heartville General Hospital has increased steadily over the past several years. The hospital's administration is seeking the best method to forecast the demand for such surgeries in year 6. The data for the past five years are shown below. 1 2 4 5 Year Demand 3 53 43 50 56 61 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. Exponential smoothing, with a = 0.6. Let the initial forecast for year 1 be 43, the same as the actual demand. II. Exponential smoothing, with a 0.9. Let the initial forecast for year 1 be 43, 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? Trend projection with regression If MSE is the performance criterion chosen by the administration, which forecasting method should it choose? Exponential smoothing with a=0.6 Exponential smoothing with a=0.9 Trend projection with regression Two-year moving average Two-year weighted moving average

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 2.1CE