Dave Cummins Runs a Local Bowling Alley

Essay

Dave Cummins runs a local bowling alley. In the face of increasing competition from other local establishments, Dave has decided he must upgrade his facilities to accommodate a younger crowd. He has examined various "cosmic bowling" upgrades for his facility and has finally decided on a package. Dave has approached a local bank for financing assistance. The bank is conservative in its lending practices. As a result the loan manager would like more insight into the potential earnings of the bowling alley, with and without the upgrades. You bowl in leagues in Dave's bowling alley. You enjoy the establishment and Dave is a friend. Thus, you have offered your services to help Dave provide a reasonable projection of establishment earnings based on bowling games. Dave has provided you the following information on lines of bowling over the past five years.
Information from the cosmic bowling upgrade manufacturer suggests a 3-5% increase in bowling lines every year for the first 4 years after the installation of their product. Based on Dave's data develop an appropriate forecasting model. Provide Dave forecasts for the next year both with and without the cosmic bowling upgrade.