Question

The administrator of a hospital is interested in predicting the amount of gross patient revenue that the organization expects to earn during the winter, spring, summer, and fall of the next year. the following data represent the gross patient revenue earned in the past 6 years.

Season	Time	Gross Revenue
Winter	1	36
Spring	2	27
Summer	3	15.1
Fall	4	37.8
Winter	5	47.6
Spring	6	41.4
Summer	7	26.9
Fall	8	51.7
Winter	9	53.3
Spring	10	44.7
Summer	11	31.3
Fall	12	57
Winter	13	62.7
Spring	14	54.5
Summer	15	39.3
Fall	16	64
Winter	17	69.8
Spring	18	62.1
Summer	19	44.1
Fall	20	67
Winter	21	77.1
Spring	22	62.4
Summer	23	47.4
Fall	24	70.2

If Fall represents the reference, create a table value to predict the forecasting for each quarter of the next year.

Answer 1

Answer 2

To create a table for forecasting the gross patient revenue for each quarter of the next year, we will use the given data and assume a linear trend model. The reference season is Fall, and we will calculate the forecasted values for Winter, Spring, and Summer based on this reference.

First, let's assign the time values to each season:

Winter: 1, 5, 9, 13, 17, 21 Spring: 2, 6, 10, 14, 18, 22 Summer: 3, 7, 11, 15, 19, 23

Next, we calculate the average gross revenue for each season:

Average Gross Revenue for Winter: (36 + 47.6 + 53.3 + 62.7 + 69.8 + 77.1) / 6 = 56.08

Average Gross Revenue for Spring: (27 + 41.4 + 44.7 + 54.5 + 62.1 + 62.4) / 6 = 47.85

Average Gross Revenue for Summer: (15.1 + 26.9 + 31.3 + 39.3 + 44.1 + 47.4) / 6 = 34.83

Now, we calculate the difference between the average gross revenue of each season and the reference season (Fall):

Winter: 56.08 - 57 = -0.92 Spring: 47.85 - 57 = -9.15 Summer: 34.83 - 57 = -22.17

Finally, we create the table for the forecasting of gross patient revenue for each quarter of the next year:

Quarter | Forecasted Revenue

Winter | 57 - 0.92 = 56.08 Spring | 57 - 9.15 = 47.85 Summer | 57 - 22.17 = 34.83 Fall (ref) | 57 (average gross revenue for Fall)

Therefore, the forecasted gross patient revenue for each quarter of the next year, assuming a linear trend model and using the Fall season as the reference, is as follows:

Winter: $56.08 Spring: $47.85 Summer: $34.83 Fall: $57 (reference season)

Please note that this forecasting model assumes a linear trend based on the available data and may not capture all factors that can influence revenue fluctuations.