MGT 455 WEEK 3 QUESTION 4 5
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 3,000
2 4,000
3 3,400
4 3,800
5 3,700
a) Forecast the mileage for next year (6th year) using a 2-year
moving average.
b) Find the MAD based on the 2-year moving average. (Hint:
You will have only 3 years of matched data.)
c) Use a weighted 2-year moving average with weights of .4
and .6 to forecast next year- mileage. (The weight of .6 is
for the most recent year.) What MAD results from using this
approach to forecasting? (Hint: You will have only 3 years of
matched data.)
d) Compute the forecast for year 6 using exponential smoothing,
an initial forecast for year 1 of 3,000 miles, and a 5 .5. PX
USA 
India