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.

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.

Mr. Rich Mann, is the credit manager of MCC Inc. Mr. Mann would like to estimate the cost of credit sales. From experience, credit customers have paid their bills in an average of 40 days and a standard deviation of 12 days. Customers who pay their bills in 10 days receive a 2% discount. Accounts that are not paid within 75 days are written off as bad debts. (Assume a normal distribution)

1. What percentage of accounts is within 25 and 60 days old?
2. What percentage of the accounts is written off as bad debts or receives the discount

Larry’s Landscaping Service has two bonds outstanding. Following are the details for each bond. Bond A Bond B # of bonds outstanding 3,000 4,000 Face Value $1,000 $1,000 Current Price 102 97 Coupon Rate 8% 7% Payable Annually Semiannually Years to Maturity 5 10 What is the yield to maturity on Bond A? ____________ What is the yield to maturity on Bond B? ____________ What is the market value weight (percentage) of Bond A? ________________ What is the market value weight (percentage) of Bond B? ________________ What is the weighted average cost of debt for Larry’s? ________________