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: Using a 2-year moving average, the forecast for year 6 = 3800 miles (round your response to the nearest whole number). If a 2-year moving average is used to make the forecast, the MAD based on this = 125.0 miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.) The forecast for year 6 using a weighted 2-year moving average with weights of 0.35 and 0.65 (the weight of 0.65 is for the most recent period) = 3785 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 0.35 and 0.65 = 177.5 miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.) Using exponential smoothing with alpha = 0.50 and the forecast for year 1 being 3,000, the forecast for year 6 = miles (round your response to the nearest whole number).
