In the US, airlines and hotel companies use different types of generic strategies. What types of generic strategies do airlines and hotel companies use, and why? (Short Essay)

The Toylot company makes an electric train with a motor that it claims will draw an average of only 0.8 ampere (A) under a normal load. A sample of nine motors was tested, and it was found that the mean current was x = 1.30 A, with a sample standard deviation of s = 0.45 A. Do the data indicate that the Toylot claim of 0.8 A is too low? (Use a 1% level of significance.)

A. What are we testing in this problem?

single mean or single proportion  

B. What is the level of significance?

C. State the null and alternate hypotheses. (Out of the following): H₀: μ = 0.8; H₁: μ ≠ 0.8 ------ H₀: p = 0.8; H₁: p ≠ 0.8 ------ H₀: μ = 0.8; H₁: μ > 0.8 ----- H₀: p = 0.8; H₁: p > 0.8 ----- H₀: p ≠ 0.8; H₁: p = 0.8 ----- H₀: μ ≠ 0.8; H₁: μ = 0.8

D. What sampling distribution will you use? What assumptions are you making? (out of the following): The standard normal, since we assume that x has a normal distribution with unknown σ. ----- The standard normal, since we assume that x has a normal distribution with known σ. ----- The Student's t, since we assume that x has a normal distribution with known σ. ----- The Student's t, since we assume that x has a normal distribution with unknown σ.

E. What is the value of the sample test statistic? (Round your answer to three decimal places.)

F: Find (or estimate) the P-value. (Out of the following): P-value > 0.250 ----- 0.125 < P-value < 0.250 ----- 0.050 < P-value < 0.125 ----- 0.025 < P-value < 0.050 ----- 0.005 < P-value < 0.025 ----- P-value < 0.005

2. In a survey of 529 travelers, 386 said that location was very important and 323 said that room quality was very important in choosing a hotel.

1. Construct a 90% confidence interval estimate for the population proportion of travelers who said that location was very important for choosing a hotel.
2. Construct a 90% confidence interval estimate for the population proportion of travelers who said that room quality was very important for choosing a hotel.

III. A common utility function used to illustrate economic examples is the Cobb-Douglas function where U(X, Y)= XαYβ, where α and β are decimal exponents that sum to 1.0 (for example, 0.3 and 0.7).

a. For this utility function, the MRS is given by MRS = MUX=MUY = αY/βX. Use this fact together with the utility-maximizing condition (and that α+ β =1) to show that this person will spend the fraction of his other income on good X and the fraction of income on good Y— that is, show PXX/I = α, PYY/I = β.

b. Use the results from part a to show that total spending on good X will not change as the price of X changes so long as income stays constant.

c. Use the results from part a to show that a change in the price of Y will not affect the quantity of X purchased.

d. Show that with this utility function, a doubling of income with no change in prices of goods will cause a precise doubling of purchases of both X and Y.

n insurance portfolio consists of two homogeneous groups of clients; N i, (i = 1 , 2) denotes the number of claims occurred in the ith group in a fixed time period. Assume that the r.v.'s N 1, N 2 are independent and have Poisson distributions, with expected values 200 and 300, respectively.

The amount of an individual claim in the first group is a r.v. equal to either 10 or 20 with respective probabilities 0.3 and 0.7, while the amount of an individual claim in the second group equals 20 or 30 with respective probabilities 0.1 and 0.9.

Let N be the total number of claims, and let S be the total aggregate claim.

Find E { S } and V a r { S }.

(Hint: Compute E { Y i } and E { Y i 2 } proceeding from the result of Question 10 and use Propositions 1-2 that we proved in class regarding E { S } and V a r { S } in the case where N is a Poisson r.v.)

Consider a casino game that an individual (Joe) wants to play. It costs him N dollars each time to play. He loves this game and wants to continue playing until he is either broke or he breaks the bank (wins all the money). The probability of winning is p; the probability of losing is q. These are fixed probability values every time the game is played.

Joe brought $M to the casino. Every time one plays you either lose the entrance fee ($N) or you win and are paid back D dollars.

(a) How much money does Joe expect to have after playing n times? Derive a formula for how much money he has.

(b) Suppose Joe starts with $100, p=0.3, q=0.7, N=$5, and D=$20. Is it likely that Joe will break the bank?

(c) If the answer to (b) is no, how many times is it likely that Joe can play this game before he is broke?

Correlations: -0.9, -0.5, -0.2, 0, 0.2, 0.5, and 0.9. For each, give the fraction of the variation in Y that is explained by the least- squares regression of Y on X. Summarize what you have found from performing these calculations.

Lifetime Escapes generates average revenue of $7 970 per person on its 7-day package tours to wildlife parks in Zimbabwe. The variable costs per person are as follows:

Annual fixed costs total $400 000.

Required:

1. Calculate the number of package tours that must be sold to break even.
2. Calculate the revenue needed to earn a target profit of $100 000. (1 mark)
3. If fixed costs increase by $19 000, what decrease in variable cost per person must be achieved to maintain the break-even point calculated in requirement 1?
4. The general manager at Lifetime Escapes proposes to increase the price of the package tour to $8500 to decrease the break-even point in units. Using information in the original problem, calculate the new break-even point in units. What factors should the general manager consider before deciding to increase the price of the package tour? (3marks)

question is correct could you please solve ASAP

As a firm takes on more debt, its probability of bankruptcy_______. (Increases or Decreases) Other factors held constant, a firm whose earnings are relatively volatile faces a________(Greater or Lower) chance of bankruptcy. Therefore, when other factors are held constant, a firm whose earnings are relatively volatile should use_______(Less or More) debt than a more stable firm. When bankruptcy costs become more important, they __________(Increase or Reduce) the tax benefits of debt.

Green Goose Automation Company currently has no debt in its capital structure, but it is considering using some debt and reducing its outstanding equity. The firm’s unlevered beta is 1.25, and its cost of equity is 11.75%. Because the firm has no debt in its capital structure, its weighted average cost of capital (WACC) also equals 11.75%. The risk-free rate of interest (rRFrRF) is 3%, and the market risk premium (RP) is 7%. Green Goose’s marginal tax rate is 35%.

Green Goose is examining how different levels of debt will affect its costs of debt and equity, as well as its WACC. The firm has collected the financial information that follows to analyze its weighted average cost of capital (WACC). Complete the following table.