The average daily rate of a hotel in Canada as of August 2018 was $184.85. Assume the average daily rate follows a normal distribution with a standard deviation of $27.70.

Standard Normal Distribution Table

a. What is the probability that the average daily rate of a Canadian hotel will be:

(i) less than $165
P(X < 165)=P(X < 165)=

(ii) more than $215
P(X > 215)=P(X > 215)=

(iii) Between $160 and $190
P(160 < X < 190)=P(160 < X < 190)=

b. Determine the average daily rates that separate the:

(i) top 6% of average daily rates from the rest of the daily rates or from the bottom 94% of average daily rates
x=x=

Round to 2 decimal places.

(ii) bottom 15% of average daily rates from the rest of the daily rates
x=x=

Round to 2 decimal places.

(iii) middle 70% of average daily rates from the rest of the daily rates

  < x <  < x <  

Round to 2 decimal places.

James is a college senior who is majoring in Risk Management and Insurance. He owns a high-mileage 1998 Honda Civic that has a market value of $2,800. The current replacement value of his clothes, television sets, stereo set, cell phone, and other property in a rented apartment totals $9,000. He has a waterbed in his rented apartment that has leaked in the past. An avid runner, James runs 5 miles daily in a nearby public park that has the reputation of being very dangerous because of drug dealers, numerous assaults and muggings, and drive-by shootings. For each of the following risks or loss exposures, identify an appropriate risk management technique that could have been used to deal with the exposure. Explain your answer. (3 questions)

1. Liability lawsuit against James arising out of negligent operation of his car

2. Waterbed leak that causes property damage to the apartment

3. Physical assault on James by gang members who are dealing drugs in the park where he runs

The city of​ Belgrade, Serbia, is contemplating building a second airport to relieve congestion at the main airport and is considering two potential​ sites, X and Y. Hard Rock Hotels would like to purchase land to build a hotel at the new airport. The value of land has been rising in anticipation and is expected to skyrocket once the city decides between sites X and Y.​ Consequently, Hard Rock would like to purchase land now. Hard Rock will sell the land if the city chooses not to locate the airport nearby. Hard Rock has four​ choices: (1) buy land at​ X, (2) buy land at​ Y, (3) buy land at both X and​ Y, or​ (4) do nothing. Hard Rock has collected the following data​ (which are in millions of​ euros):                                                                                       Site X Site Y Current purchase price 26 22 Profits if airport and hotel built at this site 50 40 Sale price if airport not built at this site 12 7 Hard Rock determines there is a 50​% chance the airport will be built at X​ (hence, a 50​% chance it will be built at​ Y).

At year-end December 31, Chan Company estimates its bad debts as 0.20% of its annual credit sales of $603,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $302 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.

Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.

• Record the estimated bad debts expense.

Note: Enter debits before credits.

• Wrote off P. Park's account as uncollectible.

Note: Enter debits before credits.

• Reinstated Park's previously written off account.

Note: Enter debits before credits.

• Record the cash received on account.

Note: Enter debits before credits.

In 1997, Scottish researchers captured newspaper headlines when they announced the birth of Dolly, a lamb cloned from an adult sheep by nuclear transplantation. These researchers cultured mammary (nuclear-donor) cells in a nutrient-poor medium and then fused these cells with enucleated sheep eggs. The resulting diploid cells divided to form early embryos, which were implanted into surrogate mothers. Out of several hundred implanted embryos, one successfully completed normal development, and Dolly was born. Later analyses showed that Dolly’s chromosomal DNA was identical to that of the nucleus donor. Numerous other animals have been cloned thus far. In fact, the science fiction plot of Jurassic Park, revolves around a theme park showcasing cloned dinosaurs. These dinosaurs were cloned from DNA found in mosquitoes that had sucked dinosaur blood and had been trapped and preserved in amber.

In this discussion, explain (in 250-300 words) why you think it is possible to recreate dinosaurs by this technique. (PLEASE TYPE & INCLUDE 1 - 2 SOURCES, NO DIAGRAMS)

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?

Question:5

1. What is meant by the standard error of the mean?
2. What is meant by a Type I and a Type II error?
3. What is the difference between a one and two tail test?

4. In September 2019, a Travel Agent used a random sample of 36 holiday makers to find out the average cost per person of a one week holiday in Queen Elizabeth National Park. The following information was found:

September 2019

          Mean                       $372.40

         Standard deviation $26.10

         Sample size 36

In the previous year the average cost of each holiday was $356.20.

1. Test whether the cost of a one week holiday to Queen Elizabeth National Park has increased significantly since the previous year.
2. The company based its views on customer satisfaction from the letters it receives. In the previous year, 68% of the letters it received were of a positive nature.

The company wishes to adopt a more scientific approach to estimating customer satisfaction.

What sample size would be needed to estimate the proportion of customers’ views to within 2% of the true figure at the 95% confidence limit and Interval                                  

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.

1. At a particular amusement park, most of the live characters have height requirements of a minimum of 57 in. and a maximum of 63 in. A survey found that​ women's heights are normally distributed with a mean of 62.4 in. and a standard deviation of 3.6 in. The survey also found that​ men's heights are normally distributed with a mean of 68.3 in. and a standard deviation of 3.6 in.
   
   Part 1:
   Find the percentage of men meeting the height requirement.
   
   The percentage of men who meet the height requirement is ____?____.
   ​(Round answer to nearest hundredth of a percent - i.e. 23.34%)
   
   What does the result suggest about the genders of the people who are employed as characters at the amusement​ park?
   Since most men___?___ the height​ requirement, it likely that most of the characters are ___?___ .
   (Use "meet" or "do not meet" for the first blank and "men" or "women" for the second blank.)
   
   Part 2: I was able to solve part 2 on my own.
   If the height requirements are changed to exclude only the tallest​ 50% of men and the shortest​ 5% of​ men, what are the new height​ requirements?
   The new height requirements are a minimum of 62.4 in. and a maximum of 68.3 in.
   ​(Round to one decimal place as​ needed.)