The Bayside Fountain Hotel is adjacent to County Coliseum, a 24,000-seat arena that is home tothe city’s professional basketball and ice hockey teams and that hosts a variety of concerts, tradeshows, and conventions throughout the year. The hotel has experienced the following occupancyrates for the past 9 years, since the coliseum opened:Year Occupancy Rate (%)1 832 783 754 815 866 857 898 909 86 Compute an exponential smoothing forecast with a = .20, an adjusted exponential smoothingforecast with a = .20 and B=30 and a linear trend line forecast. Compare the three forecasts,using MAD and average error ( ), and indicate which seems to be most accurate.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The Bayside Fountain Hotel is adjacent to County Coliseum, a 24,000-seat arena that is home to
the city’s professional basketball and ice hockey teams and that hosts a variety of concerts, trade
shows, and conventions throughout the year. The hotel has experienced the following occupancy
rates for the past 9 years, since the coliseum opened:
Year Occupancy Rate (%)
1 83
2 78
3 75
4 81
5 86
6 85
7 89
8 90
9 86 Compute an exponential smoothing forecast with a = .20, an adjusted exponential smoothing
forecast with a = .20 and B=30 and a linear trend line forecast. Compare the three forecasts,
using MAD and average error ( ), and indicate which seems to be most accurate.
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