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Question

The actual demand for the patients at Omaha Emergency Medical Clinic for the first 6 weeks of this year follows:

WEEK ACTUAL NO. OF PATIENTS
1 65
2 62
3 70
4 48
5 63
6 52

Clinic administrator Marc Schniederjans wants you to forecast patient demand at the clinic for week 7 by using this data. You decide to use a weighted moving average method to find this forecast. Your method uses four actual demand levels, with weights of 0.3330.333 on the present period, 0.250.25 one period ago, 0.250.25 two peri= ods ago, and 0.1670.167 three periods ago.

If instead the weights were 20,15,1520,15,15, and 10 , respectively, how would the forecast change? Explain why.

Solution

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In this problem, we are asked to determine how the forecast would change if the weights were changed to 25, 15, 15, and 10 respectively.

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