Please prepare a PowerPoint presentation of the followingcase.

During the late 1980s, the decline in Akron’s tire industry,inflation, and changes in governmental priorities almost resultedin the permanent closing of the Akron Children’s Zoo. Laggingattendance and a low level of memberships did not help matters.Faced with uncertain prospects of continuing, the city of Akronopted out of the zoo business. In response, the Akron ZoologicalPark was organized as a corporation to contract with the city tooperate the zoo.

The Akron Zoological Park is an independent organization thatmanages the Akron Children’s Zoo for the city. To be successful,the Zoo must maintain its image as a high-quality place for itsvisitors to spend their time. Its animal exhibits are clean andneat. The animals, birds, and reptiles are carefully looked after.As resources become available for construction and continuingoperations, the Zoo keeps adding new exhibits and activities.Efforts seem to be working, because attendance increased from53,353 in 1989 to an all-time record of 133,762 in 1994.

Due to its northern climate, the Zoo conducts its open seasonfrom mid-April until mid-October. It reopens for one week atHalloween and for the month of December. Zoo attendance dependslargely on the weather. For example, attendance was down during themonth of December 1995, which established many local records forthe coldest temperatures and the most snow. Variations in weatheralso affect crop yields and prices for fresh animal foods, therebyinfluencing the costs of animal maintenance.

In normal circumstances, the zoo may be able to achieve itstarget goal and attract an annual attendance equal to 40% of itscommunity. Akron has not grown appreciably during the past decade.But the Zoo became known as an innovative community resource, andas indicated in the table, annual paid attendance has doubled.Approximately 35% of all visitors are adults. Children account forone-half of the paid attendance. Group admissions remain a constant15% of zoo attendance.

The Zoo does not have an advertising budget. To gain exposure inits market, the Zoo depends on public service announcements, itspublic television series, and local press coverage of itsactivities and social happenings. Many of these activities are buta few years old. They are a strong reason that annual zooattendance has increased. Although the Zoo is a nonprofitorganization, it must ensure that its sources of income equal orexceed its operating and physical plant costs. Its continuedexistence remains totally dependent on its ability to generaterevenues and to reduce its expenses.

Source: Professor F. Bruce Simmons III, University of Akron.

Zoo Attendance by Year and Admission Fee

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	3.00	2.00	1.50
1995	108,363	2.50	1.50	1.00
1994	133,762	2.50	1.50	1.00
1993	95,504	2.00	1.00	0.50
1992	63,034	1.50	0.75	0.50
1991	63,853	1.50	0.75	0.50
1990	61,417	1.50	0.75	0.50
1989	53,353	1.50	0.75	0.50

Questions

1. The president of the Akron Zoo asked you to calculate theexpected gate admittance figures and revenues for both 1999 and2000. Would simple linear regression analysis be the appropriateforecasting technique?
2. What factors other than admission price influence annualattendance and should be considered in the forecast?