Instruction 14-15
the Manager of a Health Fitness Club Has

question 105

Short Answer

Instruction 14-15
The manager of a health fitness club has recorded average attendance in newly introduced Zumba classes over the last 15 months: 32.1,39.5,40.3,46.0,65.2,73.1,83.7,106.8,118.0,133.1,163.3,182.8,205.6,249.1,and 263.5.She then used Microsoft Excel to obtain the following partial output for both a first- and second-order autoregressive model.
SUMMARY OUTPUT - 2nd Order Model
Regression Statistics
$\begin{array}{lr}\text { Multiple R } & 0.993 \\ \text { R Square } & 0.987 \\ \text { Adjusted R Square } & 0.985 \\ \text { Standard Error } & 9.276 \\ \text { Observations } & 15\end{array}$

$\begin{array}{l}\text { Coefficients }\\\begin{array}{ll}\text { Intercept } & 5.86 \\\text { X Variable 1 } & 0.37 \\\text { X Variable 2 } & 0.85\end{array}\end{array}$

SUMMARY OUTPUT - $1^{\text {st }}$ Order Model
Regression Statistics
$\begin{array}{lr}\text { Multiple R } & 0.993 \\ \text { R Square } & 0.987 \\ \text { Adjusted R Square } & 0.985 \\ \text { Standard Error } & 9.150 \\ \text { Observations } & 15\end{array}$

$\begin{array}{l}\text { Coefficients }\\\begin{array}{ll}\text { Intercept } & 5.66 \\\text { X Variable } 1 & 1.10\end{array}\end{array}$
-Referring to Instruction 14-15,using the second-order model,the forecast of mean attendance for month 17 is ________.

Understand the concept of contribution margin and its application in determining break-even points and target profits.

Analyze the impact of changes in sales volume, selling price, and cost structure on net operating income.

Calculate and interpret the margin of safety in both dollar and percentage terms.

Understand the concept of operating leverage and its effect on profitability.

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Definitions:

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A person's distinctive way of speaking, influenced by factors like region, education, and social background.

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The selection of specific words to effectively and precisely convey meaning in verbal or written communication.

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Unfair treatment of a woman in the workplace due to her pregnancy, childbirth, or related medical conditions.

Discriminated

Treated unfairly or unfavorably because of certain distinguishing characteristics.