Forecast the mileage for next year using 2-year moving


A 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                           3000

2                           4000

3                           3400

4                           3800

5                           3700

  1. Forecast the mileage for next year using 2-year moving average.
  2. Compute the forecast for year 6 using Naive method.
  3. Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 is 3,000 miles and smoothening factor = 0.5.

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Basic Statistics: Forecast the mileage for next year using 2-year moving
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