The city of Seattle sells an average of 30,000 hotel rooms per night. Currently, those rooms...

The city of Seattle sells an average of 30,000 hotel rooms per night. Currently, those rooms have an average tax of $90. The city proposed an additional tax of $10 per room to help finance a stadium. Economists believe that without the tax, the city would average an extra 4000 rooms per night due to the new stadium. But with the tax, the number of rooms sold would fall to 27,000 even with the stadium. Based on these numbers, would it be smarter for the city to charge the proposed tax, or to use tax incremental financing to pay for the stadium?

Expert Solution

Rahul Sunny answered 2 years ago

A hotel in Saint Augustine books an average of 50 rooms per night. There is a...

A hotel in Saint Augustine books an average of 50 rooms per night. There is a standard deviation of 10 rooms per night. What is the probability that... a) more than 50 rooms are booked on a given night? b) between 50 and 60 rooms are booked on a given night? c) 60 rooms or less are booked on a given night? d) between 30 and 70 rooms are booked on a given night? e) less than 40...

5. When consumer demand for hotel rooms increases, the average selling prices for those rooms typically...

5. When consumer demand for hotel rooms increases, the average selling prices for those rooms typically increase as well. In the foodservice business that has not historically been the case. Fluctuations in consumer demand (e.g., volume differences between high demand Saturday nights and lowervolume Sunday nights) in restaurants do not typically result in menu price changes. Given that both hotels and restaurants are part of the hospitality industry, how do you account for these fundamental differences in approach toward strategic...

A small hotel has 50 rooms that rent for $105 per night and cost $45 to...

A small hotel has 50 rooms that rent for $105 per night and cost $45 to clean and prepare each night they are used. All rentals are by reservation and there is a 10% chance that an individual reservation will not show up. If a customer arrives at the hotel with a reservation and no room is available due to overbooking, the hotel will refund the cost of the room and pay $150 to put the customer up at another...

The Harriet Hotel in downtown Boston has 100 rooms that rent for $150 per night. It costs the hotel $30 per room in variable costs

In Crystal BallThe Harriet Hotel in downtown Boston has 100 rooms that rent for $150 per night. It costs the hotel $30 per room in variable costs (cleaning, bathroom items, etc.) each night a room is occupied. For each reservation accepted, there is a 5% chance that the guest will not arrive. If the hotel overbooks, it costs $200 to compensate guests whose reservations cannot be honored.How many reservations should the hotel accept if it wants to maximize the average...

Glitz hotel, a 500-room hotel, rents hotel rooms for $120/night. At the current sales level of...

Glitz hotel, a 500-room hotel, rents hotel rooms for $120/night. At the current sales level of 400 rooms per night, Glitz currently makes a profit of $30/room: Per room Sales $120 Costs 90 Profit 30 It costs Glitz $90/night to maintain a room ($60 in depreciation, $25 in variable maintenance and $5 in fixed booking costs). Glitz has been approached by Conventions2000.com to purchase a block of 300 rooms for $80/room per night. If this special...

Sector hotel, a 500-room hotel, rents hotel rooms for $120/night. At the current sales level of...

Sector hotel, a 500-room hotel, rents hotel rooms for $120/night. At the current sales level of 400 rooms per night, Glitz currently makes a profit of $30/room: Per room Sales $120 Costs 90 Profit 30 It costs Sector $90/night to maintain a room ($60 in depreciation, $25 in variable maintenance and $5 in fixed booking costs). Sector has been approached by Conventions2000.com to purchase a block of 300 rooms for $80/room per night. If this special...

Ada Hotel sells two room tpes: standard rooms and deluxe rooms. Average daily rate (ADR) and...

Ada Hotel sells two room tpes: standard rooms and deluxe rooms. Average daily rate (ADR) and variable costs (VC) of the two room types are provided in the table below: (Hint: Treat two room types as two different products.) ADR ($) Variable Cost ($) Standard rooms 394.50 256.43 Deluxe rooms 631.20 366.10 ...

The Dow Jones Travel Index reported what business travelers pay for hotel rooms per night in...

The Dow Jones Travel Index reported what business travelers pay for hotel rooms per night in major U.S. cities. The average hotel room rates for 20 cities are recorded. 163 177 166 126 123 120 144 173 160 192 125 167 245 146 139 134 167 162 145 207 (e) Which measure of the spread (interquartile range & standard deviation) is better to use here? Briefly justify your answer with a graph generated with StatGraphics. [3] (f) Determine if there...

] The average cost per night of a hotel room in San Francisco is $550 with...

] The average cost per night of a hotel room in San Francisco is $550 with a standard deviation is $150 based on a sample of 50 hotel room rates. a) Clearly state what the random variable in this problem is? b) What is an appropriate distribution to be used for finding the confidence intervals for this problem and why? c) Construct a 99% confidence interval estimate on the mean of all hotel room rates. d) What is the 90%...

1- Assume that visitors of a hotel on average pay $20 for minibar per night per...

1- Assume that visitors of a hotel on average pay $20 for minibar per night per room, with a standard deviation of $3. Assume further that minibar expenses are normally distributed. a- What percentage of rooms are expected to pay more than $25 per night, i.e. P(x > 25) b- What percentage of rooms are expected to pay more than $40 per night, i.e. P( x > 40)? c- What percentage of rooms are expected to pay less than $12...

Question