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Forecasting for Carbondale Hospital: purchase of new ambulance

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 Mileage
1 3,100
2 4,000
3 3,500
4 4,000
5 3,700

Forecast the mileage for next year using a 2-year moving average__________
Round your answer to the nearest whole number; for example, 1234

Find the MAD for your forecast in part (a)____________
Round your answer to the nearest whole number; for example, 123 .

Use a weighted 2-year moving average with weights of .4 and .6 to forecast next year's mileage. (The weight of .6 is for the most recent year.) ____________

What is the MAD of this forecast? ____________
Round your answer to the nearest whole number; for example, 123 .

Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,100 miles, and a =.5
____________
Round your answer to the nearest whole number; for example, 1234 .

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here is the solution to your problem. Excel file contains the calculations and word file contains the answers.

Question 3: (1 point)
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 ...

Solution Summary

The solution uses forecasting for Carbondale Hospital to determine when it is optimal to purchases a new ambulance.

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