Score: 4.2 of 7 pts 15 of 16 (16 complete) Score: 79.15%, 31.66 of 40 pts Proble

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Score: 4.2 of 7 pts 15 of 16 (16 complete) Score: 79.15%, 31.66 of 40 pts Problem 4.5 Question Help 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: 2 3,950 Year Mileage 3,100 3,400 3,800 3,700 a) Using a 2-year moving average, the forecast for year 6 3750 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 117 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 weighted 2-year moving average with weights of 0.45 and 0.55 (the weight of 0.55 is for the most recent period)- 3745 miles (round your response to the nearest whole number). The MAD for the forecast developed using a weighted 2 year moving average with weights of 0.45 and 0.55- miles round your response to one decimal place). (Hint: You will have only 3 years of matched data.) Enter your answer in the answer box and then click Check Answer. Clear All Check Answer remaining 10 8

Explanation / Answer

(a)

Forecast of year 6 based on MA(2) = (A4 + A5)/2 = (3800+3700)/2 = 3750

(b)

Ft = (At-1 + At-2)/2

MAD = Average of 125, 125, and 100 = 116.7

(c)

Forecast of year 6 based on WMA(2) = 0.45*A4 + 0.55*A5 = 0.45*3800 + 0.55*3700 = 3745

(d)

Ft = 0.45*At-2 + 0.55*At-1

MAD = Average of 167.5, 152.5, and 80 = 133.3

Year 1 2 3 4 5 Mileage (At) 3100 3950 3400 3800 3700

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