Reference no: EM131887050

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.