Conjoint Analysis

Imagine we are evaluating three hotels and have identified a conjoint model with three attributes. Two of the attributes (food and beach) have three levels, and the third, amusement, has two levels (see Table 1). We create a self-administered questionnaire. Four respondents are each asked to rate 18 packages (hotels) of attributes on a scale from 0 to 10. For example, a package/hotel might be : “A hotel with food featuring snacks, a beach with sand and boats, and no amusements.” The respondents responses are recorded in the Excel file “2_conjoint_hotels.xlsx” Google sheets version here (can be easily imported to excel): https://docs.google.com/spreadsheets/d/17tZ2xqS7KswhO9CgnUAgv-mKqPj63GwxaiHP2dhj7YU/edit?usp=sharing

Write out your regression model. For each respondent, run the conjoint analysis and report the part-worths.

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A resort hotel annual sales revenue of $1,000,000, Variable costs of $350,000, and a fixed costs of $570,000. The fixed costs include $80,000 a year for land rental lease.

a) Calculate the hotel's breakeven point.

b) If the owners had an equity investment in the hotel of $1,200,000. What level of sales revenue is required for an operating income (BT) representing a 15% return on their investment?

c). In a renegotiation of the land lease, the landowner has offered management an alternative to the fixed lease currently being paid. The alternative in the lease currently being paid. The alternative is 10% of the resort's contribution margin.

i. If management accepts this proposal, what would be the resort hotel's new breakeven point?

ii. Calculate the indifference point.

iii. Explain whether management should accept this proposal. if next year's total sales revenue is expected to be $1,200,000?

iv. Should management accept this proposal if next's total sales revenue is expected to be $1,400,000

.:PS. I need all the C ( this includes " i " ; " ii " ; " iii " & " iv "

A) A large insurance company offers group disability insurance products to businesses, which in turn offer the product to their employees. Pricing policies to prevent a loss is difficult. Since it is difficult to know exactly which employees are more prone to file claims, it is hard to price policies accurately. If policies are priced too low, high-risk clients will be attracted and losses incurred. If policies are priced too high, not enough clients will be attracted. Compounding this factor is the fact that companies are motivated to exaggerate their safety in order to negotiate a lower price.  

What problem is being described in this scenario?  

What types of activities can the insurance company undertake to distinguish between customers with a low probability versus a high probability of claiming?

B)The large accommodation chains like Marriott, Accor do not run individual hotels themselves but rather lease the naming rights to a franchisee who leases the building from a property trust. What are the main advantages for hotel chains of not directly operating the hotel? What are the main disadvantages of the franchisee not owning the building?   

The food and beverage manager of the Glitz Hotel just got a great deal on beverages for the bar. Instead of buying large 5L containers for $25 each, they instead were able to purchase 1,000 cases of 12-packs of 500ml cans for $26,640. Beverages are served in 500ml servings. Usually, they sell 800 beverages over a weekend, but they actually sold 900 this past weekend. However, 20 customers had to be refunded due to problems with the cans.

Direct labour costs are driven by the number of beverages served. A typical weekend requires four servers each working two 8-hour shifts at $12/hour. At the end of the weekend, actual labour costs were $816.50 for 71 hours.

Required:

A   Calculate the following variances:

Material rate

Material quantity

Direct Labour rate

Direct labour efficiency

B   Briefly explain the variances to the hotel manager, and explain if the variances are somehow interlinked. Assess the special purchase and identify other factors that should be considered.

Case 4

When Disney opened its $4.4 billion Euro Disneyland outside Paris, concerns over the park’s impact on French culture were expressed. To begin with, the French dedicate Sundays only to family outings. In addition, they are unaccustomed to snacking and eat promptly at 12:30, which creates bottlenecks at parks and restaurants. Disney learned that French employees objected to providing the friendly greetings and smiles expected of all amusement park workers. They then hired multilingual employees from all over Europe because Disney’s goal was to attract people from all countries of Europe. A complaint of European investors was that rigid U.S. management style did not take into account the values and customs of the people it intended to attract. For example, Europeans often bring their own lunches and do not spend money at the park’s gourmet restaurants and hotels. The park initially lost money after it opened in 1992. Discuss the course of action Disney could take to accommodate the values and customs of the people it hopes to attract.

2 pages

Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $88,000; McLean, $77,000; and Lux, $151,000. The partners share profit and losses in a 3:2:5 ratio. McLean decides to withdraw from the partnership. Prepare General Journal entries to record the May 1, 2020, withdrawal of McLean from the partnership under each of the following unrelated assumptions:

a. McLean sells his interest to Freedman for $172,000 after Gale and Lux approve the entry of Freedman as a partner (where McLean receives the cash personally from Freedman).

b. McLean gives his interest to a son-in-law, Park. Gale and Lux accept Park as a partner.
c. McLean is paid $77,000 in partnership cash for his equity.

d. McLean is paid $136,000 in partnership cash for his equity.

e. McLean is paid $31,250 in partnership cash plus machinery that is recorded on the partnership books at $119,000 less accumulated depreciation of $87,000. (Round final answers to 2 decimal places.)

4. Emily likes bird watching. Every year she takes a vacation to a park famous for

its rare birds. She goes there for 10 days. From her past experience, she knows that on

average she can get 6 good sightings a day. A very good day for her is a day with at least

10 good sightings. Assume Poisson distribution of the number of good sightings on any day

(independently of other days).

a) What is the probability that she can get at least one very good day this time?

b) What is the expected number of very good days during this vacation?

c) What is the expected number of days she has to go bird watching in this park before

getting one very good day?

d) Extra credit: What should the average number of good sightings per day be so that

the probability that she gets at least one very good day during this vacation be at least 0.9?

Suppose that you are responsible for making arrangements for a medical convention and you have been charged with finding a city for the convention that has the least expensive hotel rooms. You have narrowed your choices to Atlanta and Houston. The data set contains a sample of hotel room prices from Atlanta and Houston. Based on the sample data, can you conclude that the mean price of a hotel room in Atlanta is lower than one in Houston? Perform a two-sample t-test with a significance level of α = 0.05. Use Excel to show your work.

1. Create a box plot of the data.

2. State the null and alternative hypotheses. Is this a left-tailed, right-tailed or two-tailed test?

3. Compute the following. Assume unequal variance and df = 66. The t.test() function can be used to compute the p-value directly.

Do you reject or fail to reject the null hypothesis? Whats the conclusion?

Suppose that you are responsible for making arrangements for a medical convention and you have been charged with finding a city for the convention that has the least expensive hotel rooms. You have narrowed your choices to Atlanta and Houston. The data set contains a sample of hotel room prices from Atlanta and Houston. Based on the sample data, can you conclude that the mean price of a hotel room in Atlanta is lower than one in Houston? Perform a two-sample t-test with a significance level of α = 0.05. Use Excel to show your work.

1. Create a box plot of the data.

2. State the null and alternative hypotheses. Is this a left-tailed, right-tailed or two-tailed test?

3. Compute the following. Assume unequal variance and df = 66. The t.test() function can be used to compute the p-value directly.

Do you reject or fail to reject the null hypothesis? Whats the conclusion?

Your professor is going on vacation. He has narrowed down a list of potential hotels, but he is still overwhelmed by the data. He loves great food and wants to do all the activities at the resort.

1. Develop two unique ways to display the data (two unique types of charts) to show him where he should stay.

2. Recommend the best way to present the data. Write a narrative summary of what hotel you recommend based on the data visualization and the tradeoffs that you observe.