Case Study 8.1

In February 2017 the price of a daily pass to drive on a Volusia County beach was $10, and at that price 26,467 daily passes were sold. In February 2018 the price of a daily pass rose to $20, and at that price the number of daily passes sold dropped to 17,994.

1. What is the elasticity of demand for the daily pass? Is the demand elastic or inelastic? Explain the meaning of your answer in the context of this problem. Is revenue increasing or decreasing?
2. The County Council may consider raising the price of a daily pass to $30 next year. Based on elasticity of demand, should the Council consider another increase? Please justify your answer.

Case Study 8.2

Demand for tickets to a theme park, based on average daily attendance, is given by           Dp=-7.7p2+495.8p+20,000, where p is the daily admission price. The current admission price is $75, but the park is considering raising the price to $80.

3. At $75, what is the elasticity of demand for the tickets? Is the demand elastic or inelastic? Based on elasticity of demand, should the price be increased?
4. What should the ticket price be for maximum revenue?

A study was conducted to see whether two types of cars, A and B, took the same time to parallel park. Seven drivers were randomly obtained and the time required for each of them to parallel park (in seconds) each of the 2 cars was measured. The results are listed below in order of driver (e.g. the first listing for A and B are driver 1; the second listing driver 2; etc.) Car A: 19, 21.8, 16.8, 24.2, 22, 34.7, 23.8 Car B: 17.8, 20.2, 16.2, 41.4, 21.4, 28.4, 22.7

A. Explain why this is a paired test and not a two sample test.

B. Test whether the there is a difference in mean parallel parking time of the two cars at a 0.05 level of significance. Include the hypotheses, the test statistic, the p-value, test decision and conclusion in the context of the problem.

C. Do you believe the test results are valid? Explain.

D. What test decision error could you have made and provide an explanation of this error in context of the problem. E. Include a copy of your R-code and test output.

1. At a particular amusement park, most of the live characters have height requirements of a minimum of 57 in. and a maximum of 63 in. A survey found that​ women's heights are normally distributed with a mean of 62.4 in. and a standard deviation of 3.6 in. The survey also found that​ men's heights are normally distributed with a mean of 68.3 in. and a standard deviation of 3.6 in.
   
   Part 1:
   Find the percentage of men meeting the height requirement.
   
   The percentage of men who meet the height requirement is ____?____.
   ​(Round answer to nearest hundredth of a percent - i.e. 23.34%)
   
   What does the result suggest about the genders of the people who are employed as characters at the amusement​ park?
   Since most men___?___ the height​ requirement, it likely that most of the characters are ___?___ .
   (Use "meet" or "do not meet" for the first blank and "men" or "women" for the second blank.)
   
   Part 2: I was able to solve part 2 on my own.
   If the height requirements are changed to exclude only the tallest​ 50% of men and the shortest​ 5% of​ men, what are the new height​ requirements?
   The new height requirements are a minimum of 62.4 in. and a maximum of 68.3 in.
   ​(Round to one decimal place as​ needed.)

The City of Comstock had a total General Fund balance of $1,400,000 at the end of its fiscal year. The year end balance sheet reports inventory of material and supplies of $60,000. City Council passed an ordinance that all revenue received from hotel occupancy taxes must be used for beautification projects in the City. The City received $280,000 in hotel occupancy taxes and spent $225,000 on beautification projects this year. The City received a Federal grant of $120,000 for specifically the purchase of new breathing apparatus for the fire department. Due to a backlog by the manufacturer of the equipment, the equipment has not been purchased by year end.

Which of the following statements are correct regarding the classifiction of fund balance at year end?

QUESTIONS:

(c) Prepare an adjusted trial balance on May 31.

Based on:

The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.

Other data:

1. Draw the decision tables for all the problems below
2. For the decision tables above, reduce the tables if possible.

Problems

1. A month is to be represented as an integer. A valid month is in the range of 1..12. An integer < 1 is invalid, or an integer > 12 is invalid. Consider how this can be simplified or reduced.
2. An employee is either hourly or salaried. An hourly employee is paid by calculating an hourly wage and an hourly employee that works more than 40 hours is paid overtime. An hourly employee that works less than 40 hours must produce an absence report. A salaried employee can work any number of hours.
3. A new program to determine parking rates is to be developed. Users will select (from a dropdown) the classification of the vehicle owner (faculty/staff or student), the location of the parking (garage or open lot) and the type of vehicle (large or small).  Students with a small vehicle pay $250.00 in a lot and $350.00 in a garage.  Students with a large vehicle may park in a lot for $400.00.  Faculty/staff may park small vehicles anywhere for $150.00 and large vehicles in a lot for $200.00.  Large vehicles are not allowed in the garage.

The management of Arturo’s Water Park is developing an advertising campaign to communicate the intended message, “Your kids will love you more if you take them to Arturo’s Water Park.” (a) For a print ad in this advertising campaign, suggest some wording for the copy in the ad. Then, describe your suggestions for the artwork in the ad. Which of these two parts of the ad – the copy or the artwork – would likely be more effective in communicating the intended message? Use course material to justify your reasoning. (b) For the print ad you described in Part (a), describe a pretest that would be appropriate. Explain why pretesting is important in advertising. (c) If Arturo’s management uses market segmentation to target this print ad, what is the segmentation variable it should use? Explain your reasoning. (d) Design an experiment to test whether or not this print ad is effective. Describe the test group and the control group of the experiment, and describe the time course of events. What is the dependent variable in your experiment? Explain why both the test group and the control group are necessary for this experiment to have validity.

The following tables form part of a database held in a relational DBMS:

Hotel (hotelNo, hotelName, hotelAddress, country)

Room (roomNo, hotelNo, type, price)

Guest (guestNo, guestName, guestAddress, country)

Booking (hotelNo, guestNo, dateFrom, dateTo, roomNo)

Write the SQL statements for the following questions:

1. List the rooms that are currently unoccupied at the Grosvenor Hotel, for:

(a) Use 2019-10-01 as today's date. Include all 'Grosvenor' hotels. List in hotelNo, roomNo order. Use NOT IN to perform the difference operation

(b) Use 2019-10-01 as today's date. Include all 'Grosvenor' hotels. List in hotelNo, roomNo order. Use NOT EXISTS to perform the difference operation.

(c) Use 2019-10-01 as today's date. Include all 'Grosvenor' hotels. List in hotelNo, roomNo order. Use LEFT JOIN to perform the difference operation.

(d) Use 2019-10-01 as today's date. Include all 'Grosvenor' hotels. List in hotelNo, roomNo order. Use MINUS to perform the difference operation.

5. You have been asked to appraise a closed Burger King on Hwy. 1 in Virginia Commons. The building was built 5 years ago, but has been vacant for the last 2. Vacant buildings tend to deteriorate faster than occupied buildings. For this reason you estimate the age of the building at 9 years. Fast food restaurants have an expected economic life of 20 years. The building is 2,100 square feet and sits on a lot that is 4,200 square feet. A lot just south of the subject sold recently for $18.50 a square foot. Fast food restaurant construction costs average $210 per square foot. What is your estimate of the value of this property (hint – cost approach)?