Problem:
The carbondale Hospital is considering the purchase of a new ambulance. The decison 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 3050 2 3950 3 3400 4 3850 5 3700
Question 1) Using a 2 year moving average, the forecast for year 6?
Question 2) IF a 2 year moving average is used to make the forecast, the MAD based on this?
Solve the problem and show all work.