The Valley Swim Club has 300 stockholders, each holding one share of share of stock in the club. A share of club stock allows the shareholder’s family to use the club’s heated outdoor pool during the summer, upon payment of annual member ship dues of 175$. The past few years, the length of the waiting has remained relatively steady, at approximately 20 names. The waiting list suddenly grew to 250 people as the summer approached.
The board directors of the swim club had refrained from issuing new shares in the past because there was never a ...view middle of the document...
They would also like to know number of days they could expect more than 500 people to use the pool June through August, given the current number of shares.
The board directors have the following daily attendance records for June through August from the previous summer. It thinks the figures would provide accurate for the upcoming summer.
Average Attendance per day (¯x) = x1+x2…..x92/ 92
Average Attendance per day (x¯) = 28900 / 92 = 314.1304
Z=x-¯x / s
Z= 500-314 / 102.58 = 1.8119
Between 314 through 500 is 0.4649
If it is more than 500 people will attend days are 5 – 0.4649 = 4.5351
Average daily weekend’s attendance was 432.2692 as I calculated on the Excel.
After calculating numbers based on June through August information:
1. Club should issue new shares, because all the information qualifies:
• They expected number of days which attendance would exceed 500 should be no more than 5 with the current member ship were 4.53.
• The current daily attendance should be no more than 320, which were 314.
• The average daily weekend attendance should be no more than 500, which were 432.
2. They will issue = 400-314 / 2 = 43
3. Additional revenue will realize = 43*1000=43000