ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Metropolitan Hospital has estimated its average monthly bed needs, N, as:
N = 460 + 9X
where X = time period (months); (January 2002 = 0)
Assume that no new hospital additions are expected in the area in the foreseeable future. The following monthly seasonal adjustment factors have
been estimated, using data from the past five years:
Forecast Metropolitan's bed demand for January, April, July, November, and December 2007.
Month
Adjustment Factor (%)
Forecast
January
+5
April
-15
July
+4
November
-5
December
-25
Suppose the following actual and forecast values for June bed demands have been recorded.
Year Forecast
Actual
2007
1,045
1,139
2006
937
974
2005
829
895
2004
721
743
2003
613
656
2002
505
515
What seasonal adjustment factor would you recommend be used in making future June forecasts?
O 5.5%
O 0.2%
O 2.3%
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Transcribed Image Text:Metropolitan Hospital has estimated its average monthly bed needs, N, as: N = 460 + 9X where X = time period (months); (January 2002 = 0) Assume that no new hospital additions are expected in the area in the foreseeable future. The following monthly seasonal adjustment factors have been estimated, using data from the past five years: Forecast Metropolitan's bed demand for January, April, July, November, and December 2007. Month Adjustment Factor (%) Forecast January +5 April -15 July +4 November -5 December -25 Suppose the following actual and forecast values for June bed demands have been recorded. Year Forecast Actual 2007 1,045 1,139 2006 937 974 2005 829 895 2004 721 743 2003 613 656 2002 505 515 What seasonal adjustment factor would you recommend be used in making future June forecasts? O 5.5% O 0.2% O 2.3%
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