The mayor of a town has proposed a plan for the construction of an adjoining community. A political study took a sample of 1400 1400 voters in the town and found that 61% 61 % of the residents favored construction. Using the data, a political strategist wants to test the claim that the percentage of residents who favor construction is not equal to 64% 64 % . Testing at the 0.01 0.01 level, is there enough evidence to support the strategist's claim?

State the null and alternative hypotheses.

Find the value of the test statistic. Round your answer to two decimal places.

Specify if the test is one-tailed or two-tailed.

Determine the P-value of the test statistic. Round your answer to four decimal places.

Identify the value of the level of significance.

Make the decision to reject or fail to reject the null hypothesis.

State the conclusion of the hypothesis test.

The mayor of a town has proposed a plan for the construction of an adjoining community. A political study took a sample of 1400 voters in the town and found that 61 % of the residents favored construction. Using the data, a political strategist wants to test the claim that the percentage of residents who favor construction is not equal to 64 % . Testing at the  0.01 level, is there enough evidence to support the strategist's claim?

State the null and alternative hypotheses.

Find the value of the test statistic. Round your answer to two decimal places.

Specify if the test is one-tailed or two-tailed.

Determine the P-value of the test statistic. Round your answer to four decimal places.

Identify the value of the level of significance.

Make the decision to reject or fail to reject the null hypothesis.

State the conclusion of the hypothesis test.

Problem 17

The Hodges, a 300-room hotel, has provided you with the following data for the months of June and July:

                                                                 June                    July

                            Single rooms sold                  2,400                   2,418

                            Double rooms sold                4,200                   4,278

                            Room revenue                    $396,000                       $339,000

                            Number of paid guests 9,900                   9,910

Required:

1. Compute the following for June and July.
   1. Paid occupancy percentage
   2. Multiple occupancy percentage
   3. Average number of guests per double room sold (assume that only one guest stayed in each single room sold)
   4. Monthly ADR
   5. Monthly RevPar

2. Was the Hodges financial performance better in June or July? (Assume that fixed costs were constant and that the variable costs per room sold remained constant. Support your answer with detailed discussion.

Deductible expenses for a service member’s moving do not include:

a. the cost of transporting household goods

b. Hotel Cost while moving to the new locations

c. Meals Incurred during the move

d. storage of household goods for a limited time upon arrival at the new location

Over the past six months, Six Flags conducted a marketing study on improving their park experience. The study cost $3.00 million and the results suggested that Six Flags add a kid's only roller coaster.

Suppose that Six Flags decides to build a new roller coaster for the upcoming operating season. The depreciable equipment for the roller coaster will cost $50.00 million and an additional $5.00 million to install. The equipment will be depreciated straight-line over 20 years.

The marketing team at Six Flags expects the coaster to increase attendance at the park by 5%. This translates to 107,883.00 more visitors at an average ticket price of $38.00. Expenses for these visitors are about 13.00% of sales.

There is no impact on working capital. The average visitor spends $21.00 on park merchandise and concessions. The after-tax operating margin on these side effects is 34.00%. The tax rate facing the firm is 35.00%, while the cost of capital is 6.00%.

What is the project cash flow for year 1? (express answer in millions)

What is the NPV of this coaster project if Six Flags will evaluate it over a 20-year period? (Six Flags expects the first year project cash flow to grow at 5% per year, going forward)
(Express answer in millions)

Summary

The cost of renting a room at a hotel is, say $100.00 per night. For special occasions, such as a wedding or conference, the hotel offers a special discount as follows.

If the number of rooms booked is:

• at least 10, the discount is 10%
• at least 20, the discount is 20%
• at least 30, the discount is 30%

Also if rooms are booked for at least three days, then there is an additional 5% discount.

Instructions

Write a program that prompts the user to enter:

1. The cost of renting one room
2. The number of rooms booked
3. The number of days the rooms are booked
4. The sales tax (as a percent).

The program outputs:

1. The cost of renting one room
2. The discount on each room as a percent
3. The number of rooms booked
4. The number of days the rooms are booked
5. The total cost of the rooms
6. The sales tax
7. The total billing amount.

Your program must use appropriate named constants to store special values such as various discounts.

Since your program handles currency, make sure to use a data type that can store decimals with a precision to 2 decimals.

Said Al Hamli and his friend Khaled Al Masri are the owners of a small hotel, the Sun Star, in the Red Sea town of Hurghada. Close to Cairo, the resort town has grown from a fishing village to one of Egypt’s famous vacation spots. Hurghada is the gateway to many small islands and offshore reefs favored by recreational snorkelers and divers and many tourists combine their stay with excursions to the Nile Valley, the Great Pyramids and Luxor.

To take advantage of the growing numbers of tourists, particularly from Europe and the Middle East, Said and Khaled are planning to double the room capacity of their hotel by adding a second building to the already existing structure. Fortunately, Said recognized the great potential of Hurghada ten years ago, well before the town became a hub for recreational tourism, and bought the land adjacent to the hotel for relatively little money when it was still under construction.

Now, Said and Khaled are studying the new layout and trying to determine if the expected revenues justify the substantial initial investment of EGP 70 million ($11.8 million). According to their calculations, operating cost would rise by EGP 23.8 million ($4 million) in the first year, which would include hiring and training of new personnel, maintenance of facilities and equipment etc., and likely increase by about 5 percent per year thereafter. With an aggressive marketing strategy, Said and Khaled believe that a revenue enhancement of EGP 20.8 million in the first year is realistic and that a subsequent annual increase of about 15 percent for eight to nine years, with revenues leveling off thereafter, can be achieved. Ideally, Khaled would like to retire in ten years. Seeking advice from you, a knowledgeable friend, they share their detailed cost and revenue projections with you.

QUESTIONS

Kim Hotels is interested in developing a new hotel in Seoul. The company estimates that the hotel would require an initial investment of $25 million. Kim expects the hotel will produce positive cash flows of $4 million a year at the end of each of the next 20 years. The project's cost of capital is 14%.

1. What is the project's net present value? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places.

   $    million

2. Kim expects the cash flows to be $4 million a year, but it recognizes that the cash flows could actually be much higher or lower, depending on whether the Korean government imposes a large hotel tax. One year from now, Kim will know whether the tax will be imposed. There is a 50% chance that the tax will be imposed, in which case the yearly cash flows will be only $2.9 million. At the same time, there is a 50% chance that the tax will not be imposed, in which case the yearly cash flows will be $5.1 million. Kim is deciding whether to proceed with the hotel today or to wait a year to find out whether the tax will be imposed. If Kim waits a year, the initial investment will remain at $25 million. Assume that all cash flows are discounted at 14%. Use decision-tree analysis to determine whether Kim should proceed with the project today or wait a year before deciding.

Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the​ moment, the firm has three​ alternatives: stay where it is but enlarge the​ facility; locate along the main street in nearby

Newbury​;

or locate in a new shopping mall in

Hyde Park.

The company has selected the four factors listed in the following table as the basis for evaluation and has assigned weights as​ shown:

​a) Based on the given​ information, the best location for Marilyn Helm Retailers is to open the new retail outlet in

Hyde Park

​, with a total weighted score of

54.5054.50.

​(Enter your response rounded to two decimal​ places.)

​b) A new subway station is scheduled to open across the street from the present location in about a​ month, so its third factor score should be raised to

40.

​Then, the best location for Marilyn Helm Retailers is to open the new retail outlet in

Hyde Park

Hyde Park

Newbury

Present Location

​, with a total weighted score of

nothing.

​(Enter your response rounded to two decimal​ places.)