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    Forecasting for Carbondale Hospital: purchase of new ambulance

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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 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.

    $2.19

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