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In normal circumstances, the zoo may be able to achieve its target goal and attract an annual attendance equal to 40% of its community. Approximately 35% of all visitors are adults. Children accounted for one-half of the paid attendance. Group admissions remain a constant 15% of zoo attendance.
Due to its northern climate, the zoo conducts its open season from mid-April until mid-October. It reopens for 1 week at Halloween and for the month of December. Zoo attendance depends largely on the weather. For example, attendance was down during the month of December 1995, which established many local records for the coldest temperature and the most snow. Variations in weather also affect crop yields and prices of fresh animal foods, thereby influencing the costs of animal maintenance.
YEAR
ATTENDANCE
ADMISSION FEE ($)
ADULT
CHILD
GROUP
1998
117,874
4.00
2.50
1.50
1997
125,363
3.00
2.00
1.00
1996
126,853
1995
108,363
1994
133,762
1993
95,504
0.50
1992
63,034
0.75
1991
63,853
1990
61,417
1989
53,353
Would simple linear regression analysis be the appropriate forecasting technique to calculate the expected gate admittance figures and revenues for both 1999 and 2000?
What factors other than admission price influence annual attendance and thus should be considered in the forecast?
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