The Carbondale Hospital is considering the purchase of a new

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: Using a 2-year moving average, the forecast for year 6 = 3825 miles (round your response to the nearest whole number). If a 2-year moving average is used to make the forecast, the MAD based on this = miles (round your response to one decimal place).

Solution

So, MAD = 83.33 miles.

Year	Mileage	2 year moving average	Error
1	3050
2	4000
3	3500	3525	25
4	3850	3750	100
5	3800	3675	125
		Total	250
		MAD =	250 / 3 = 83.33