Question & Answer: The Carbondale Hospital is considering the purchase of a new ambulance. The decision…..

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 1 2 3 4 5
Mileage 3 comma 0003,000 3 comma 9503,950 3 comma 4503,450 3 comma 7503,750 3 comma 7503,750

a) Using a 2-year moving average, the forecast for year 6 =

37503750

miles (round your response to the nearest whole number).

b) If a 2-year moving average is used to make the forecast, the MAD based on this =

nothing

miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.

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