Question

The Carbondale 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	1	2	3	4	5
Mileage	3,050	3,950	3,500	3,850	3,700

 a) Using a 2-year moving average, the forecast for year 6= _______  miles (round your response to the nearest whole number).

Answer 1

Please find below the answer. .

forecast for 6th year based on 2 year moving average = (4th year mileage + 5th year mileage)/2
			=(3850+3700)/2
			3775