Question

The Carbondale Hospital is considering the purchase of a new ambulance. the decision will rest partly on the anticipated milage 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 | 4,000 | 3,450 | 3,850 | 3,700 |

Forecast the mileage for next year using a 2-year moving average.

Answer 1

To forecast the mileage for next year using a 2-year moving average, add up the mileage for the past two years and divide it by 2. Based on the given data, the mileage for the past two years is 7,550. Dividing this by 2 gives a 2-year moving average of 3,775 miles.

Step-by-step explanation:

To forecast the mileage for next year using a 2-year moving average, you would add up the mileage for the past two years and divide it by 2. Then, you would repeat this process for the next two years and so on.

Based on the given data, the mileage for the past two years is 3,850 + 3,700 = 7,550. Dividing this by 2 gives us a 2-year moving average of 3,775. Therefore, you can forecast the mileage for next year to be 3,775 miles.