During the year 2019, Ricki, who is not self-employed and does not receive employer reimbursement for business expenses, drove her car 5,600 miles to visit clients, 10,600 miles to get to her office, and 500 miles to attend business-related seminars. All of this mileage was incurred ratably throughout the year. She spent $390 for airfare to another business seminar and $230 for parking at her office. Using the automobile expense rates in effect for 2019, what is her deductible transportation expense?

My answer - $3928 = incorrect

A Ministry of Transportation investigation on driving speed and gasoline consumption for midsize vehicles (in miles per gallon), resulted in the following data:

Speed (Miles per Hour) 55       50      25      60      `25    30     55      40      50      30

Miles per Gallon             25      26      35      21       32    30     23      25      25      28

1. Compute the covariance. ________________
2. Compute the coefficient of correlation. __________________
3. Based on (a) and (b), what conclusion can you reach about the relationship between driving speed and fuel consumption?

1. A major automobile company claims that its New electric powered car has an average range of more than 100 miles. A random sample of 50 new electric cars was selected to test the claim. Assume that the population standard deviation is 12 miles. A 5% level of significance will be used for the test.

1. What would be the consequences of making a Type II error in this problem?

2. Compute the Probability of making a Type II error if the true population mean is 105 miles.

3. What is the maximum probability of making a Type I error in this problem?

Using Python:

1. Compute the difference of differences between consecutive numbers of a series:

input 
ser = pd.Series([1, 3, 6, 10, 15, 21, 27, 35])
 
output:
[nan, 2.0, 3.0, 4.0, 5.0, 6.0, 6.0, 8.0]
[nan, nan, 1.0, 1.0, 1.0, 1.0, 0.0, 2.0]

2. Compute the euclidean distance between two series:

Input: 

p = pd.Series([1, 2, 3, 4, 5, 6, 7, 8, 9, 10])
q = pd.Series([10, 9, 8, 7, 6, 5, 4, 3, 2, 1])

Desired Output: 

18.165

When you decide to go and have a dinner with your friends in a world class hotel such as the Langham hotel or Coronado Beach, perhaps you would be horrified by the high price you would have to pay for a bottle of soft drink such as Coca Cola or Pepsi Cola or wine or even bottled water. Perhaps you begin to ponder why the same commodity that you can get at a supermarket at one tenth the hotel price is going for such an astronomical price at the hotel.Of course, such facilities will have a warning such "you are not allowed to bring in your own food or drinks" posted at appropriate places in the facility for the attention of customers.In another scenario, you enter a designer shop to buy clothes with a designer label for a friend on their birthday or on Valentine day and you reckon the clothes are so much expensive compared to similar own brand clothes from a clothing or chain store, even though they may cost a similar amount to produce.

Questions

Using your knowledge in basic economics, especially of the concept of demand and supply, attributes of a competitive market and price elasticity of demand, briefly discuss the following

A. Why may a hotel charge such very high prices for wine, soft drinks or even bottled water and yet quite reasonable prices for food and still get away with such high prices?

B. Why are designer shops able to price their clothes so very expensive and yet still get clients even though similar clothes that are available in a supermarket chain shops cost pretty much less?

When you decide to go and have a dinner with your friends in a world class hotel such as the Langham hotel or Coronado Beach, perhaps you would be horrified by the high price you would have to pay for a bottle of soft drink such as Coca Cola or Pepsi Cola or wine or even bottled water. Perhaps you begin to ponder why the same commodity that you can get at a supermarket at one tenth the hotel price is going for such an astronomical price at the hotel.Of course, such facilities will have a warning such "you are not allowed to bring in your own food or drinks" posted at appropriate places in the facility for the attention of customers.In another scenario, you enter a designer shop to buy clothes with a designer label for a friend on their birthday or on Valentine day and you reckon the clothes are so much expensive compared to similar own brand clothes from a clothing or chain store, even though they may cost a similar amount to produce.

Questions

Using your knowledge
in basic economics, especially
of the concept of demand and supply, attributes of a competitive market and price elasticity of demand, briefly discuss the following

A. Why may a hotel charge such very high prices for wine, soft drinks or even bottled water and yet quite reasonable prices for food and still get away with such high prices?

B. Why are designer shops able to price their clothes so very expensive and yet still get clients even though similar clothes that are available in a supermarket chain shops cost pretty much less?

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a)In order to determine the average price of hotel rooms in Atlanta. Using a 0.1 level of significance, we would like to test whether or not the average room price is significantly different from $110. The population standard deviation is known to be $16. A sample of 64 hotels was selected. The p-value associated with the test statistic (z) is calculated and it is 0.03. We conclude that the average price of hotel rooms in Atlanta is NOT significantly different from $110. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)

b)In order to determine the average price of hotel rooms in Atlanta. Using a 0.1 level of significance, we would like to test whether or not the average room price is significantly different from $110. The population standard deviation is known to be $16. A sample of 64 hotels was selected. The test statistic (z) is calculated and it is -1.45. We conclude that the average price of hotel rooms in Atlanta is NOT significantly different from $110. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)

C)A sample of 28 account balances of a credit company was taken to test whether the mean of all account balances is significantly greater than $1,150. Using the sample standard deviation, the test statistic (t) was calculated to be $1.93. We use a 0.05 level of significance. Assume the population of account balances is normally distributed and the population standard deviation is unknown to us.We conclude that the mean of all account balances is significantly greater than $1,150. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)

1. An amusement park, whose customer set is made up of two markets, adult and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is $5. (Hint: Because marginal cost is a constant, so is average variable cost. Ignore fixed cost.) The owners of the amusement park want to maximize profits.

1. Calculate the price, quantity, and profit for each segment if the amusement park charges a different price in each market. (Hint: calculate profit at each price in the adult market, then in the child market, and choose profit maximizing in each. Using a spreadsheet would make this task manageable.)

Adult market price (in dollars):

Adult market quantity:

Adult market profit (in dollars):

Child market price (in dollars):

Child market quantity:

Child market profit (in dollars):

Total profit (adult + child, in dollars):

2. Calculate the price, quantity, and profit if the amusement park charges the same price in the two markets combined. (Hint: Add adult and child quantities together, and treat this total and the entire market quantity at each price.)

Market price (in dollars):

Quantity (child + adult at this price):

Profit:

3. Is profit higher, lower, or the same when the market is split with different prices for adults and for children?

According to Marriott’s vice president of marketing and public relations, quality, price, service, amenities, comfort, and convenience are all independent variables that affect the preferences for a hotel chain. Assume that in a survey, each of the independent variables is measured on a 7-point scale with 1=poor and 7=excellent. Preference for hotel chain is also measured on a 7-point scale, with 1=not at all preferred and 7=greatly preferred. Each respondent rates Marriott and three competing hotel chains on all the independent variables as well as preference to stay there on a vacation.

1. What sampling plan should be adopted and how should the sample size be determined for the survey?

Survey analysis: what statistical technique would you use to answer the following questions? Please state the technique you recommend, justify your reasons and outline any important assumptions.

2. Is preference related to each of the independent variables considered individually? What is the nature of the relationship you expect?
3. Is preference related to all the independent variables considered simultaneously?
4. Do the respondents evaluate the hotel chains more favourable on quality than they do on price?
5. The sample is divided into two groups: regular patrons of Marriott and patrons of other hotels. Do these two groups differ in terms of their ratings of Marriott on quality?
6. Are the two groups in the question above different on terms of income measured as high, medium and low?
7. The sample is divided into three groups, heavy, medium and light users of hotels. Do the three groups differ in terms of preference for Marriott?