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Metropolitan Hospital has estimated its average monthly bed needs asN = 1;000 + 9Xwhere X = time period (months); January 2002 = 0N = monthly bed needsAssume 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:MONTH            ADJUSTMENT FACTOR (%)January                                 +5April                                    −15July                                       +4November                           −5December                          −25a. Forecast Metropolitan’s bed demand for January, April, July, November, and December 2007.b. If the following actual and forecast values for June bed demands have been recorded, what seasonal adjustment factor would you recommend be used in making future June forecasts?YEAR              FORECAST             ACTUAL2007                      1,045                       1,0962006                       937                           9932005                       829                           8972004                       721                           7512003                       613                           6282002                       505                           560

- October 5, 2022 - Edwin Tunner

Metropolitan Hospital has estimated its average monthly bed needs as
N = 1;000 + 9X
where X = time period (months); January 2002 = 0
N = monthly bed needs
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:

MONTH            ADJUSTMENT FACTOR (%)
January                                 +5
April                                    −15
July                                       +4
November                           −5
December                          −25

a. Forecast Metropolitan’s bed demand for January, April, July, November, and December 2007.
b. If the following actual and forecast values for June bed demands have been recorded, what seasonal adjustment factor would you recommend be used in making future June forecasts?

YEAR              FORECAST             ACTUAL
2007                      1,045                       1,096
2006                       937                           993
2005                       829                           897
2004                       721                           751
2003                       613                           628
2002                       505                           560

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