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Forecast next year mileage

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Beaumont 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

Year 1

3,000

Year 2

4,000

Year 3

3,400

Year 4

3,800

Year 5

3,700

Use a weighted 2-year moving average with weights of 0.4 and 0.6 to forecast next year's mileage, the weight of 0.6 is for the most recent year

Reference no: EM132716223

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