Question

Using exponential smoothing with α of 0.1 and the given forecast for year 1


As you can see in the following table, demand for heart transplant surgery at Washington General Hospital has increased steadily in the past few years: 

Year12345
Heart Transplants46.048.055.057.057.0

The director of medical services predicted 6 years ago that demand in year 1 would be 42.0 surgeries 


a) Using exponential smoothing with α of 0.1 and the given forecast for year 1, the forecasts for years 2 through 6 are (round your responses to one decimal place): 

Year123456
Forecast42.0




For the forecast made using exponential smoothing with α = 0.90 and the given forecast for year 1. MAD =  _______ surgeries (round your response to one decimal place) 


b) Forecasts for years 4 through 6 using a 3-year moving average are (round your responses to one decimal place): 

Year456
Forecast


For forecasts made using a 3-year moving average, MAD = _______  surgeries (round your response to one decimal place)

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