If the equilibrium wage is $9 in the market for hotel workers and $8 in the market for restaurant workers and both markets have similar elasticities of labor supply and demand, then a minimum wage of $10 in both markets will:

Assume you are an SMC Hotel Manager for and an Interview has been conducted for You

Answer the following questions in Brief

4. State and explain any three (3) significant errors you identified during the audit of SMC hotel?

5. Discuss any 2 situations in which the auditor can be sued or liable?

6. State and explain any 3 qualities of an auditor?

7. Explain how you used interviews and listening skills during your audit of SMC hotel?

In 2016 the Better Business Bureau settled 80% of complaints they received in the United States. Suppose you have been hired by the Better Business Bureau to investigate the complaints they received this year involving new car dealers. You plan to select a sample of new car dealer complaints to estimate the proportion of complaints the Better Business Bureau is able to settle. Assume the population proportion of complaints settled for new car dealers is 0.80, the same as the overall proportion of complaints settled in 2016.

(a)

Suppose you select a sample of 180 complaints involving new car dealers. Show the sampling distribution of

p.

A bell-shaped curve is above a horizontal axis labeled p.

• In order of left to right, the ticks on the horizontal axis are labeled: 0.74, 0.77, 0.8, 0.83, 0.86.
• The curve enters the viewing window near 0.74 just above the horizontal axis and travels up to the right to a maximum near 0.8.
• After reaching the maximum, the curve then travels down and to the right until it leaves the viewing window at the same height it entered near 0.86.

A bell-shaped curve is above a horizontal axis labeled p.

• In order of left to right, the ticks on the horizontal axis are labeled: −0.06, −0.03, 0, 0.03, 0.06.
• The curve enters the viewing window near −0.06 just above the horizontal axis and travels up to the right to a maximum near 0.
• After reaching the maximum, the curve then travels down and to the right until it leaves the viewing window at the same height it entered near 0.06.

A bell-shaped curve is above a horizontal axis labeled p.

• In order of left to right, the ticks on the horizontal axis are labeled: −1.2, −0.2, 0.8, 1.8, 2.8.
• The curve enters the viewing window near −1.2 just above the horizontal axis and travels up to the right to a maximum near 0.8.
• After reaching the maximum, the curve then travels down and to the right until it leaves the viewing window at the same height it entered near 2.8.

A bell-shaped curve is above a horizontal axis labeled p.

• In order of left to right, the ticks on the horizontal axis are labeled: −0.03, 0, 0.03, 0.06, 0.09.
• The curve enters the viewing window near −0.03 just above the horizontal axis and travels up to the right to a maximum near 0.03.
• After reaching the maximum, the curve then travels down and to the right until it leaves the viewing window at the same height it entered near 0.09.

(b)

Based upon a sample of 180 complaints, what is the probability that the sample proportion will be within 0.04 of the population proportion? (Round your answer to four decimal places.)

(c)

Suppose you select a sample of 470 complaints involving new car dealers. Show the sampling distribution of

p.

A bell-shaped curve is above a horizontal axis labeled p.

• In order of left to right, the ticks on the horizontal axis are labeled: −0.04, −0.02, 0, 0.02, 0.04.
• The curve enters the viewing window near −0.04 just above the horizontal axis and travels up to the right to a maximum near 0.
• After reaching the maximum, the curve then travels down and to the right until it leaves the viewing window at the same height it entered near 0.04.

A bell-shaped curve is above a horizontal axis labeled p.

• In order of left to right, the ticks on the horizontal axis are labeled: −1.2, −0.2, 0.8, 1.8, 2.8.
• The curve enters the viewing window near −1.2 just above the horizontal axis and travels up to the right to a maximum near 0.8.
• After reaching the maximum, the curve then travels down and to the right until it leaves the viewing window at the same height it entered near 2.8.

A bell-shaped curve is above a horizontal axis labeled p.

• In order of left to right, the ticks on the horizontal axis are labeled: 0.76, 0.78, 0.8, 0.82, 0.84.
• The curve enters the viewing window near 0.76 just above the horizontal axis and travels up to the right to a maximum near 0.8.
• After reaching the maximum, the curve then travels down and to the right until it leaves the viewing window at the same height it entered near 0.84.

A bell-shaped curve is above a horizontal axis labeled p.

• In order of left to right, the ticks on the horizontal axis are labeled: −0.02, 0, 0.02, 0.04, 0.06.
• The curve enters the viewing window near −0.02 just above the horizontal axis and travels up to the right to a maximum near 0.02.
• After reaching the maximum, the curve then travels down and to the right until it leaves the viewing window at the same height it entered near 0.06.

(d)

Based upon the larger sample of 470 complaints, what is the probability that the sample proportion will be within 0.04 of the population proportion? (Round your answer to four decimal places.)

(e)

As measured by the increase in probability, how much do you gain in precision by taking the larger sample in part (d)?

Ada Hotel sells two room tpes: standard rooms and deluxe rooms. Average daily rate (ADR) and variable costs (VC) of the two room types are provided in the table below: (Hint: Treat two room types as two different products.)                      
                      
   ADR ($)   Variable Cost ($)              
Standard rooms    394.50   256.43              
Deluxe rooms   631.20   366.10              
                      
                      
The Mock Hotel's fixed costs for a month is = =       252480              
Sales mix (contribution of each room type to total room revenue) of the hotel is:                      
                      
Deluxe rooms   66%                  
Standard rooms    34%                  
                      
Required:                      
Using the information provided above, answer the following questions:                      
a. What is the break-even room nights (number) for the the hotel given the sales mix of the two room packages?                      
b. What must be the room revenue for the hotel to make a profit of $50,000 a month?                      
c. If the hotel is considering an advertisement campaign for its rooms with a cost $5,000, hom much in room revenue should be generated to cover this extra cost?                      

On average, 90 patrons arrive per hour at a hotel lobby (interarrival times are exponential) waiting to check in. At present there are five clerks, and patrons wait in a single line for the first available clerk. The average time for a clerk to service a patron is three minutes (exponentially distributed). Clerks earn $10 per hour, and the hotel assesses a waiting time cost of $20 for each hour that a patron waits in line. If needed, round your answers to the nearest cent. a. Compute the expected cost per hour of the current system. $ b. The hotel is considering replacing one clerk with an Automatic Clerk Machine (ACM). Management estimates that 20% of all patrons will use an ACM. An ACM takes an average of one minute to service a patron. It costs $48 per day (one day equals eight hours) to operate an ACM. Should the hotel install the ACM? Assume that all customers who are willing to use the ACM wait in a separate queue. The hotel replace the clerk with an ACM, as the total hourly cost would to $ .

3) A stock market analyst wants to determine if the recent Hotel C upgrade to 4 starts has changed the distribution of shares of the hotel market. The current market share for the existing 3 hotels is shown in table below. The analyst collects data from a random sample of 200 investors. The table below shows the observed investors’ share holdings (f_i ). When using this random sample the analyst needs to be 90% confident of test results. The hypothesis to be tested follows:

H₀ : P_a =0.25; P_b =0.45; P_c =0.30 ; market shares have remained same

H_a : P_a ≠0.25; P_b ≠0.45; P_c ≠0.30 ; market shares have changed

1. Compute the test statistic

B. Has the recent upgrade of Hotel C to 5 stars changed the hotel market composition? Why?

Question 2

Suppose there is enough room for a maximum of three (3) cars to park around a fire hydrant. The harm resulting to society rises as additional cars park around the fire hydrant. This is because as more cars park, it becomes more costly for firefighters to navigate their water hoses around the stationary vehicles. The total (not marginal) cost to society as a function of the number of parked cars around a fire hydrant is as follows:

a. If each driver’s gain from parking a car around the fire hydrant is constant at $20, how many cars should park around the fire hydrant from an economic perspective? (Hint: you need to find the marginal cost to society to answer this part.)

b. What is the maximum level of total surplus resulting from parking around the fire hydrant? How many cars should park around the fire hydrant from an economic perspective?

​(Replacement chains​) Destination Hotels currently owns an older hotel on the best beachfront property on Hilton Head​ Island, and it is considering either remodeling the hotel or tearing it down and building a new convention​ hotel, but because both hotels would occupy the same physical​ location, the company can only choose one project-that ​is, these are mutually exclusive projects. Both of these projects have the same initial outlay of $ 1,800,000. The first​ project, since it is a remodel of an existing​ hotel, has an expected life of 9 years and will provide free cash flows of $ 400,000 at the end of each year for all 9 years. In​ addition, this project can be repeated at the end of 9 years at the same cost and with the same set of future cash flows. The proposed new convention hotel has an expected life of 18 years and will produce cash flows of $ 280,000 per year. The required rate of return on both of these projects is 9 percent. Calculate the NPV using replacement chains to compare these two projects.

You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks:

Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 3%, and you believe the following probability distribution for future market returns is realistic:

1. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.)
   1. r_i = 4.4% + (10.5%)b_i
   2. r_i = 3.0% + (10.6%)b_i
   3. r_i = 7.0% + (10.2%)b_i
   4. r_i = 3.0% + (10.5%)b_i
   5. r_i = 4.4% + (10.6%)b_i

   -Select-IIIIIIIVVItem 1

2. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places.

     %

3. Suppose Rick Kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 million, it has an expected return of 15%, and its estimated beta is 1.4. Should Kish invest in the new company?

   The new stock -Select-should notshouldItem 3 be purchased.

   At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places.

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