The Carbondale Hospital is considering the purchase of ambulance. The TheXarbond

Question

The Carbondale Hospital is considering the purchase of ambulance. The TheXarbondale Hospital is considering the purchase of ambulance. The decision will rest partly on the anticipated mileage" be driven next year. The miles driven during the past 5
years are as follows:

Year

Mileage

1

3000

2

4000

3

3400

4

3800

5

3750

a) Forecast the mileage for next year using a 2-year moving average. = 3775 miles
b) if a 2-year moving average is used to make the forcast, the MAD based on this = 116.7 miles
c) The forcast for year 6 using a weighted 2-year moving average with weights of .35 and .65 to forecast next year's mileage. (The weight of .65 is for the most recent year.) = 3768 miles

d.) What MAD results from using this approach to forecasting? (Hint: You will have only 3 years of matched data.) = ?????

Need the answer to d.) only as i have figured out the rest of the problem and answers are provided

Year

Mileage

1

3000

2

4000

3

3400

4

3800

5

3750

Explanation / Answer

Year Mileage MA Forecast Mileage-forecast |Mil-forecast| 1 3000 2 4000 3 3400 3500 -100 100 4 3800 3700 100 100 5 3750 3600 150 150 6 3775 MAD 116.67 Year Mileage Weighted MA Mileage - Forecast |Mil-forecast| 1 3000 2 4000 3 3400 3650 -250 250 4 3800 3610 190 190 5 3750 3660 90 90 6 3767.5 MAD 176.67

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