Forecasting

    Use the forecasting template (excel spreadsheet attached) to forecast total US healthcare expenditures for 2010 using SMA, WMA, single exponential smoothing, trend-adjusted (or double) exponential smoothing, and linear trend. Using the executive summary template (attached), respond to the following questions: 1. Which model do you believe offers the best forecast? 2. Do you see any problems with your model? 3. Repeat this exercise for hospital care, physician services, dental services, home health care, and prescription drugs. According to your findings, do any one of these areas drive the increase in healthcare expense?