A luxury hotel believes that 90% of their customers are very satisfied with its service. A random sample of 120 guests were surveyed to determine how satisifed they are with the service and accommodations at the hotel.

a. Describe the random variable for this probability distribution (i.e., what type of variable, what is the probability distribution, what does the variable represent, what are it's possible values, etc.).

b. What is the probability that at least 110 of the people in the sample report being very satisfied with the hotel's service?

c. What is the probability that less than 100 people in the sample report being very satisfied with the service at the hotel?

d. Employees have been promised a bonus if more than 90% of the sample are very satisfed with the hotel's service. What is the probability that the employees will receive the bonus?

e. How many people in the sample can be expected to report that they are very satisfied with the service at the hotel?

f. if the sample shows only 100 of the customers reporting being very satisfied with the service at the hotel, explain using probability why the hotel might want to re-assess the accuracy of the belief that 90% of customers are very satisfied with service at the hotel.

home / study / business / finance / finance questions and answers / margaritaville hotel properties is opening a new beach resort in tybee island, ga at a cost ... Question: Margaritaville Hotel Properties is opening a new beach resort in Tybee Island, GA at a cost of $2... Margaritaville Hotel Properties is opening a new beach resort in Tybee Island, GA at a cost of $250 Million in year 0. The hotel is expected to operate for 20 years and at the end, be sold for approximately $500 Million in year 20. As an investment the hotel expected to earn $27 Million per year (including $20 Million in year 20). With a discount rate of 8% and reinvestment rate of 8%, analyze the projects feasibility using: Payback  Discounted Payback  NPV  IRR  Profitability Index  MIRR It turns out, you forgot that the franchise company that licenses the Margaritaville name will require the hotel owners to renovate the hotel property in year 10. This will result in significant room closures and a significant capital investment. Therefore, cash flows in that year 10 are expected to be -$5 Million. Using MIRR, what did you get for a rate of return?

QUESTION TWO

1. Discuss the capital allowances available to hotel owners and the capital expenditures that qualify for such allowances.                                                                                                            
2. Wageni tourist hotel ltd. Is a five star hotel in Mombasa. The hotel provided the following information,

1. Written down values as at 31.12.2018

Disposals during the year.

2. Additions during the year

1. Computer            350,000.00
2. Fax Machine        40,000.00
3. Photocopier         160,000.00
4. Beds                    500,000.00
5. New hotel building                      5,000,000.00

      The new hotel building was brought to use on 1.9.2019

3. The old hotel building was first brought in to use on 1.1.2014 at a cost of Sh. 8,000,000.00
4. A saloon car which cost sh. 1,200,000 in 2014 was traded in for a new car costing Sh. 900,000.00. The old car was valued at Shs. 600,000 and the company paid a balance of shs. 300,000.00

Required

1. Compute capital allowances due to the company for the year ended 31.12.2019.            
2. Show the written down value of all the assets as at 31.12.2019. Comment on Class I balance.

Consider the following marginal benefit (demand) curves of two individuals for a certain good: MB_A(q) = 100 – q and MB_B(q) = 300 – q.

Consider the Marginal Private Costs of providing Fireworks in The Park, MC(q) = 50 + q.

1. Find q^M, the amount of Fireworks in the Park provided by the Market, when individuals provide the good with no co-operation and act only in their self-interest.
2. What is the efficient level of Fireworks in the Park, q*?
3. Person B brings a friend to the park (person C), with the same MB curve as theirs (MB_C = 300 – q). Find the new quantity provided by the Market (q^M) and the new efficient level of Fireworks in the Park (q*).
4. Despite being visually appealing, fireworks are known to cause negative externalities such as noise pollution and increased deaths by heart attacks in dogs. We estimated the marginal external costs of Fireworks in the Park, MEC (q) = 70 + q. What is the new efficient level of Fireworks in the Park? Consider the MSB curve found in part f, which includes person C. How does this new efficient allocation compare to the Market equilibrium, q^M, found in f?

London Township began Year 1 with a balance of $10 million in its bridge repair fund, a capital projects fund. The fund balance is classified as restricted.

At the start of the year, the governing council appropriated $6 million for the repair of two bridges. Shortly thereafter, the town signed contracts with a construction company to perform the repairs at a cost of $3 million per bridge.

During the year, the town received and paid bills from the construction company as follows:

• $3.2 million for the repairs on Bridge 1. The company completed the repairs, but owing to design changes approved by the town, the cost was $0.2 million greater than anticipated. The town did not encumber the additional $0.2 million.
• $2.0 million for the repairs, which were not completed, on Bridge 2.

At the start of the following year, the governing council reappropriated the $1 million to complete the repairs on Bridge 2. During that year, the town received and paid bills totaling $0.7 million. The construction company completed the repairs, but the final cost was less than anticipated—a total of only $2.7 million.

1. Prepare journal entries to record the events and transactions over the two‐year period. Include entries to appropriate, reappropriate, encumber, and reencumber the required funds; to record the payment of the bills; and to close the accounts at the end of each year.
2. Determine the restricted fund balance at the end of the second year. Is it equal to the initial fund balance less the total cost of the repairs?

Problem 1: The average Saturday attendance at a movie theater is 974 people with a standard deviation of 54 people.

Part A: What is the probability that less than 900 people will attend this coming Saturday?

Part B: What is the probability of between 875 and 1075 people will attend this Saturday?

Part C: Eighty percent of Saturday attendances will be less than how many people?

Part D: The movie theater manager wants to determine a staffing level such that 98% of the time she can service the customers. How many customers should she set a staffing plan to serve?

2. In 2013, Corky St. Clair, an “off-off-off-off” Broadway producer/director moves back to Blaine Missouri and purchases an old movie theater in hopes of reviving the facility for future community theater productions. The purchase price of the property was $150,000. He paid $15,050 to replace the roof, paid $7,643 for wiring and plumbing to meet the city code, and hired local teenagers to sweep and clean the building totaling $320. Additional costs include: $13,000 to remodel backstage offices; $1,200 for advertising opening night; and $3,000 for the post-show party. What is the cost of building?

A home theater in a box is the easiest and cheapest way to provide surround sound for a home entertainment center. A sample of prices is shown here (Consumer Reports Buying Guide, 2004). The prices are for models with a DVD player and for models with a DVD player.

1. Compute the mean price for models with a DVD player and the mean price for models without a DVD player. What is the additional price paid to have a DVD player included in a home theater unit?
2. Compute the range, variance, and standard deviation for the two samples. What does this information tell you about the prices for models with and without a DVD player?

Suppose the JLFB movie production company has produced two movies, A and B, and distributes them to theaters with willingness to pay for the two movies, which is shown below,

Movie A Movie B

A. Smith Theater                         $135 $95

J. Schumpeter Theater                $85 $115

a. Which package will result in the largest profit for the JFLB movie production company?

b. Charge $85 for movie A and $95 for movie B.

c. Charge $135 for movie A and $115 for movie B.

d. Charge $100 for both movie A and B if they are bought together.

e. Charge $110 for both movie A and B if they are bought together.

as a marketing director for an hotel, illustrate with the use of a diagram how you can apply the service marketing mix to the hotel