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Growth Rate Estimation

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Almost two million persons per year visit Glacier National Park. Due to the weather, monthly park attendance figures varied widely during the most recent year:
(See Attached Chart).

1) Notice that park attendance is lower in December than in January, despite a 42.4 percent average growth rate in monthly attendance. How is that possible?

2) Suppose the data described in the table measured park attendance over a number of years rather than during a single year. Explain how the arithmetic average annual rate of growth gives a misleading picture of the growth in park attendance.

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Solution Summary

Analysis of park attendance from statistical data.

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The 42.4 percent figure is the arithmetic average of the changes in attendance from month to month. An arithmetic average is constructed by adding all the percentage change values for the year, and dividing by ...

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