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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 3,000
2 4,000
3 3,400
4 3,800
5 3,700

a) Forecast the mileage for next year using a 2-year moving average.

b) Find the MAD based on the 2-year moving average forecast in part (a). (Hint: You will have only 3 years of matched data.)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M978812

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