Problem: The children’s museum found that annual visits (in 1,000) are associated with kindergarten enrollment (in 1.000) one year prior in the community. They gathered data of 8 years as below.
visits kindergarten enrollment I 50 3 2 55 2 3 a 4 4 55 4 5 62 2 6 58 6 7 72 5 8 70
Please use appropriate functions in spreadsheet to address the following questions.
I. How would you describe the relationship between the annual visits of the children’s museum and kindergarten enrollment? Does it make sense to use the linear regression method to forecast the annual visits of the children’s museum given above data? Justify your answer using appropriate plot or measurement. (reorganize above dataset if necessary in spreadsheet)
2. If the linear regression is appropriate, please construct the regression model using any excel functions introduced in class. Is this a good model? Please explain.
3. Forecast annual visits of the children’s museum for all possible years using the regression model you obtained in (2).
4. Suppose the museum also intends to use the weighted moving average with weights of 8 and 2 to forecast annual visits. Please generate forecasts for all Possible Lao.
5. If you use MSE as the performance measurement, which forecasting method would you recommend, linear regression or weighted moving average?