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A ski repair shop at a resort in Colorado sells replacement poles each season. The shop needs to develop a forecast of next season’s sales so that they can place an order for poles with their supplier well in advance of the beginning of the season. Sales data for the past five years are shown below. Compare the forecasts given by the following models.
Year: 1 2 3 4 5
Sales (units): 350 395 345 385 395
Develop forecasts using:
a. A 5 year moving average.
b. A weighted moving average model with weights of 0.2, 0.2, 0.1, 0.3, and 0.2 for years 1 through 5 respectively.
c. An exponential smoothing model with year 1 forecast of 380 and α= 0.3.
The local news calls, having found the HCO’s IRS Form 990. The reporter notes that the CEO and several employed physicians are listed with generous compensation. She’d like an explanation of the HCO’s policy. What are the key takeaways you want the r..
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