Submitted By zcarney092
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Before the board of directors could make a decision on whether to sell more shares and, if so, how many, the board members felt they needed more information. Specifically, they would like a forecast of the average number of people (family members, guests, etc.) who might attend the pool each day during the summer with the current number of shares. .:.
The Cascades Swim Club has 300 stockholders, each holding one share of stock in the club. A share of club stock allows the shareholder’s family to use the club’s heated outdoor pool during the summer upon payment of annual membership dues of \$175. The club has not issued any stock in years and only a few of the existing shares come up for sale each year. The board of directors administers the sale of all stock. When a shareholder wants to sell, he or she turns the stock into the board, which sells it to the person at the top of the waiting list. For the past few years, the length of the waiting list has remained relatively steady at approximately 20 names.(…………….)

SOLUTION:

Week
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 Total
M 139 198 341 287 303 242 194 197 275 246 224 258 235 3,139
T 273 310 291 247 223 177 207 273 241 177 239 130 218 3,006
W 172 347 380 356 315 245 215 213 190 161 274 195 271 3,334
Th 275 393 367 322 258 390 304 303 243 308 205 238 259 3,865
F 337 421 359 419 193 284 331 262 277 256 361 224 232 3,956
Sa 402 595 463 516 378 417 407 447 241 391 411 368 317 5,353
Su 487 497 578 478 461 474 399 399 384 400 419 541 369 5,886
Total 2,085 2,761 2,779 2,625 2,131 2,229 2,057 2,094 1,851 1,939 2,133 1,954 1,901 28,539

The seasonal factors for each weekday are as follows:

The linear trend line equation computed from the 13 weekly totals is

Using this forecast model to forecast weekly demand for each of the 13 weeks for the next summer and...

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