Running Head: AKRON ZOOLOGICAL PARK 1

Akron Zoological Park

Ricardo Ginez

National American University

AKRON ZOOLOGICAL PARK 2

Akron Zoological Park

1. The president of the Akron Zoo asked you to calculate the expected gate admittance

figures and revenues for both 1999 and 2000. Would simple linear regression analysis be

the appropriate forecasting technique?

According the information provided in the case study simple linear regression would be

the appropriate forecasting technique if other forms of independent variables were given

or if not created in order to figure out a trend. Variables such as the number of exhibits or

animals could be used but in this case being that the independent variable that is chosen

for the given forecast would overall have to create a straight line. Using simple linear

regression using variables would greatly improve how the Akron Zoo tracks attendance.

The calculations to the expected gate admittance figures and revenues for both 1999 and

2000 are as follows:

Gate Admittance Figures

1999=135,741

2000=137,219

Revenues

1999 2000

Adults $190,038 $192,107

Children $169,677 $171,524

Groups $30,542 $30,874

Total= $390,257 $394,505

AKRON ZOOLOGICAL PARK 3

Trend Projection

160,000

140,000
A
120,000
t
t
100,000
e
n
80,000
d
a 60,000
n
c 40,000 y = 9196.7x - 2E+07
e R² = 0.7757
20,000

0
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Year

2. What factors other than admission price influence annual attendance and thus should be

considered in the forecast?

Factors that should be considered when talking about the influence of annual attendance are the

number of new animals, discount rates for groups, the weather throughout the year, renovations,

advertising, quality of service, hours of operation, the trend of employees staying at their job,

gasoline prices, growth of tourism within the area, exhibits that are active, and cleanliness of the

entire business.