Question

Buckeye Creek Amusement Park is open from the beginning of May to the end of October. Buckeye Creek relies heavily on the sale of season passes. The sale of season passes brings in significant revenue prior to the park opening each season, and season pass holders contribute a substantial portion of the food, beverage, and novelty sales in the park. Greg Ross, director of marketing at Buckeye Creek, has been asked to develop a targeted marketing campaign to increase season pass sales. Greg has data for last season that show the number of season pass holders for each zip code within 50 miles of Buckeye Creek. he has also obtained the total population of each zip code from the U.S. Census bureau website. Greg thinks it may be possible to use regression analysis to predict the number of season pass holders in a zip code given the total population of a zip code. If this is possible, he could then conduct a direct mail campaign

that would target zip codes that have fewer than the expected number of season pass holders.

1. Compute descriptive statistics and construct a scatter diagram for the data. Discuss
your findings.

Answer 1

Greg Ross can calculate descriptive statistics and plot a scatter diagram to visualize the correlation between the population size of zip codes and the number of season pass holders, eventually performing a regression analysis to predict and identify target markets for the direct mail campaign.

Step-by-step explanation:

To address this question, Greg Ross should first calculate descriptive statistics such as mean, median, mode, standard deviation, and range for the number of season pass holders and the total population for each zip code. After computing these statistics, Greg can then plot a scatter diagram, placing the total population on the x-axis and the number of season pass holders on the y-axis, to visualize any potential correlation between the two variables.

By analyzing the scatter diagram, Greg can identify any trends or patterns, such as if zip codes with larger populations tend to have more season pass holders, which supports the idea of a relationship between population size and season pass sales. If this relationship shows a clear pattern, a regression analysis could be performed to create a model that predicts the number of season pass holders based on population data. This analysis would then enable Greg to identify target markets that have fewer season pass holders than expected, based on their population size, for his direct mail campaign.