Disney offers both hotel rooms and entrance to their theme parks at their resorts. Consider four different market segments with willingness to pay for rooms and market shares shown in the table below. Assume a total market size of 5,000 individuals per day.
Segment Amusement
Park Lover, Luxury Lover, Conference Devotee, Disney Devotee
Room, $200 $300 $325 $50 Theme Park $150 $50 $5 $200 Market Share
20% 10% 20% 50%
a) Scenario A: Consider a Disney price menu with the Hotel Room at
$300 and Theme Park Entrance at $150. Complete the chart by
answering the following questions. i. Calculate the consumer
surplus for each segment with each offering. (4 points) ii.
Calculate the revenue earned from each offering and market segment.
(4 points)
Consumer Surplus Room Theme Park Amusement Park Lover Luxury Lover
Conference Devotee Disney Devotee Revenue Theme Park Room Amusement
Park Lover Luxury Lover Conference Devotee Disney Devotee
b) Scenario B: Consider a Disney price menu of Hotel Room at
$200 and Theme Park Entrance at $150. Complete the chart by
answering the following questions. i. Calculate the consumer
surplus for each segment with each offering. (4 points) ii.
Calculate the revenue earned from each offering and market segment.
(4 points) Consumer Surplus Room Theme Park Amusement Park Lover
Luxury Lover Conference Devotee Disney Devotee Revenue Theme Park
Room Amusement Park Lover Luxury Lover Conference Devotee Disney
Devotee
c) Scenario C: Consider a Disney price menu of Hotel Room at $325
and Theme Park Entrance at $200, and Hotel + Theme Park Bundle for
$350. Complete the chart by answering the following questions. i.
Calculate the consumer surplus for each segment with each offering.
(6 points) ii. Calculate the revenue earned from each offering and
market segment. (6 points)
Consumer Surplus Theme Park Room Room + Theme Park Amusement Park
Lover Luxury Lover Conference Devotee Disney Devotee Revenue Room
Theme Park Room + Theme Park Amusement Park Lover Luxury Lover
Conference Devotee Disney Devotee
d) What are the optimal prices of the Hotel Rooms and Theme Park Entrance in the absence of bundling? (3 points)
e) Compare the revenue obtained in part (c)(ii) with the revenue obtained in part (d)? (2 points)
f) Explain the intuition about why bundling increases the overall revenue earned? (3 points)
I know how to do part a and b but not sure for part c, d, and e
In: Economics
In: Economics
In: Economics
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night (USA Today, April , ). Assume that room rates are normally distributed with a standard deviation of $55.
a. What is the probability that a hotel room costs $225 or more per night (to 4 decimals)?
b. What is the probability that a hotel room costs less than $140 per night (to 4 decimals)?
c. What is the probability that a hotel room costs between $200 and $300 per night (to 4 decimals)?
d. What is the cost of the 20% most expensive hotel rooms in New York City? Round up to the next dollar.
In: Math
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night.† Assume that room rates are normally distributed with a standard deviation of $55.
(a)
What is the probability that a hotel room costs $245 or more per night? (Round your answer to four decimal places.)
(b)
What is the probability that a hotel room costs less than $120 per night? (Round your answer to four decimal places.)
(c)
What is the probability that a hotel room costs between $210 and $300 per night? (Round your answer to four decimal places.)
In: Math
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55. a. What is the probability that a hotel room costs $225 or more per night (to 4 decimals)? b. What is the probability that a hotel room costs less than $140 per night (to 4 decimals)? c. What is the probability that a hotel room costs between $200 and $300 per night (to 4 decimals)? d. What is the cost of the 20% most expensive hotel rooms in New York City? Round up to the next dollar. $ or
In: Statistics and Probability
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $205 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55. Use Table 1 in Appendix B. a. What is the probability that a hotel room costs $225 or more per night (to 4 decimals)? b. What is the probability that a hotel room costs less than $143 per night (to 4 decimals)? c. What is the probability that a hotel room costs between $201 and $301 per night (to 4 decimals)? d. What is the cost of the 20% most expensive hotel rooms in New York City? Round up to the next dollar.
In: Statistics and Probability
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $205 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $53. Use Table 1 in Appendix B.
a. What is the probability that a hotel room costs $224 or more per night (to 4 decimals)?
b. What is the probability that a hotel room costs less than $139 per night (to 4 decimals)?
c. What is the probability that a hotel room costs between $201 and $299 per night (to 4 decimals)?
d. What is the cost of the 20% most expensive hotel rooms in New York City? Round up to the next dollar.
In: Statistics and Probability
|
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $203 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $56. Use Table 1 in Appendix B. a. What is the probability that a hotel room costs $227 or more per night (to 4 decimals)? b. What is the probability that a hotel room costs less than $139 per night (to 4 decimals)? c. What is the probability that a hotel room costs between $199 and $300 per night (to 4 decimals)? d. What is the cost of the 20% most expensive hotel rooms in New York City? Round up to the next dollar. |
In: Statistics and Probability
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $205 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55. Use Table 1 in Appendix B.
a. What is the probability that a hotel room costs $227 or more per night (to 4 decimals)?
b. What is the probability that a hotel room costs less than $143 per night (to 4 decimals)?
c. What is the probability that a hotel room costs between $201 and $299 per night (to 4 decimals)?
d. What is the cost of the 20% most expensive
hotel rooms in New York City? Round up to the next dollar.
$ or - Select your answer -more less
In: Statistics and Probability