It is interesting to determine whether the rates of a hotel in Los Angeles, Atlanta, Houston, and Phoenix are the same or not. Seven hotels are sampled in Los Angeles, five hotels are sampled in Atlanta and Houston, while six hotels are sampled in Phoenix. Data are not reported, only the mean and standard deviation for each city are given for statistical analysis.

A) State the Null and alternative hypothesis you are testing

B) Compute the respective SS and fill in the ANOVA table to summarize the comparison.

C) Based on the F value, what is your conclusion, use a= 0.025. What is the best you can say about the P value based on the F tables.

D) Find the 95% confidence interval’s for the true average of Los Angeles and Atlanta.

A hotel in Saint Augustine books an average of 50 rooms per night. There is a standard deviation of 10 rooms per night. What is the probability that...

a) more than 50 rooms are booked on a given night?

b) between 50 and 60 rooms are booked on a given night?   

c) 60 rooms or less are booked on a given night?   

d) between 30 and 70 rooms are booked on a given night?

e) less than 40 rooms are booked on a given night?

Glitz hotel is going to make a $2,000,000 investment by completing renovating a floor of the hotel. The floorplan will be entirely redone, and they can have a mix of three types of rooms: Luxury Suites, Large rooms, or Regular rooms. Due the size of the floor, they can build a maximum of 20 luxury suites or a maximum of 40 large rooms or a maximum of 60 regular rooms or a mix of all three.

Luxury suites will rent for $400 per night.

Lrrge rooms will rent for $200 per night.

Regular rooms will rent for $135 per night.

The cost to maintain each room, excluding depreciation, is $30/night ($25 in variable maintenance and $5 in fixed booking costs).

The food and beverage manager noted that since the suites are often used for conventions as private hospitality suites, they purchase an average of $200 per night in room service. Large rooms purchase an average of $40 and Regular $10 per night for room service. Room service generates a 70% gross profit. The cleaning manager noted that the suites generally require an extra $10/night in cleaning costs due to these conventions.

Estimated maximum demand per night is as follows:

Suites:10 rooms

Large: 25 rooms

Regular: no maximum demand

How many of each room should they build as part of the renovation?

Because of staffing decisions, managers of the Gibson-Marimont Hotel are interested in the variability in the number of rooms occupied per day during a particular season of the year. A sample of 29 days of operation shows a sample mean of 300 rooms occupied per day and a sample standard deviation of 35 rooms.

1. What is the point estimate of the population variance?
   
   
2. Provide a 90% confidence interval estimate of the population variance (to 1 decimal).
   (  ,  )
   
3. Provide a 90% confidence interval estimate of the population standard deviation (to 1 decimal).
   (  ,  )

a) In order to determine the average price of hotel rooms in Atlanta. Using a 0.1 level of significance, we would like to test whether or not the average room price is significantly different from $110. The population standard deviation is known to be $16. A sample of 64 hotels was selected. The p-value associated with the test statistic (z) is calculated and it is 0.03. We conclude that the average price of hotel rooms in Atlanta is NOT significantly different from $110. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)

b) A sample of 27 account balances of a credit company showed an average balance of $1,169 and a standard deviation of $139. You want to determine if the mean of all account balances is significantly greater than $1,150. Use a 0.05 level of significance. Assume the population of account balances is normally distributed. Compute the test statistic.

c) A sample of 30 account balances of a credit company showed an average balance of $1,170 and a standard deviation of $125. You want to determine if the mean of all account balances is significantly greater than $1,150. Assume the population of account balances is normally distributed. Compute the p-value for this test.

d) A sample of 28 account balances of a credit company was taken to test whether the mean of all account balances is significantly greater than $1,150. Using the sample standard deviation, the test statistic (t) was calculated to be $1.89. We use a 0.05 level of significance. Assume the population of account balances is normally distributed and the population standard deviation is unknown to us. We conclude that the mean of all account balances is significantly greater than $1,150. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)

DO NOT ANSWER IN EXCEL

1. Mangement is considering two hotel projects. Project A will be in Jamaica with an intial investment of $865,000 and Project B will be in Canada with an initial investment of $750,000

The cost of capital for Project A is 13% and the cost of capital for project B is 15%.
Calculate the following;

1. Calculate the discounted payback period of Project A
2. Calculate the discounted payback period of Project B.
3. Calculate the net present value for Project A
4. Calculate the net present value for Project B.

5. Management can only accept one project. Which project should management accept? Explain your answer

Regarding the hotel/hospitality industry

Who are the competitors? Is it easy to start a business in this industry? Are there significant entry barriers? What are the dominant characteristics and current trends in your industry?

Discuss industry size in terms of the number of companies, total employment, capital investment, major customers, and annual revenues. What are the driving forces of change in the industry, (e.g., innovation, technology, and buyer preferences and lifestyles)? State how organizations compete within the industry and identify the critical success factors in this industry.

5. Calculate the net food cost percentage for the Food department of a hotel for the month of May. The total food sales revenue for May was $191,118. The following information has been gathered:

• beginning inventory on May 1st was $6,932
• purchases in May totaled $12,883
• food transferred from main storeroom was $61,315
• food transferred to other outlet was $114
• entertainment and promotion checks totaled $2,010
• management signed checks were $691
• documented food spoilage was $139
• food for employee meals was $5,795
• happy hour hors d’oeuvres was $2,040
• ending inventory on May 31st was $6,318

To earn full credit, please calculate these amounts. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts:

First calculate gross cost of food sales $___

6 . Please use the information from Question 5 to calculate the amount to transfer from mail storeroom. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts:

Transfer from mail storeroom $___

2. Please use the information from Question 5 to calculate the amount to transfer to the other outlet. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Transfer to other outlet $___

3. Please use the information from Question 5 to calculate the amount in entertainment and promotion checks. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts:

Entertainment & promotion checks $___

4.Please use the information from Question 5 to calculate the amount in management signed checks. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Management signed checks $___

5.Please use the information from Question 5 to calculate the amount of food spoilage. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Food spoilage $ ___

6. Please use the information from Question 5 to calculate the amount in Employees' meals. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Employees' meals $___

7.Please use the information from Question 5 to calculate the amount in happy hour hors d'oeuvres. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts:

Happy hour hors d'oeuvres $ ___

8. Please use the information from Question 5 to calculate the amount in net cost of food sales. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Net cost of food sales $___

9.Please use the information from Question 5 to calculate the amount in food cost percentage. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Food cost percentage (round to two decimal points) ___%

10.A 345-room hotel’s food and beverage department recorded food revenue of $3,460,397.5 and beverage revenue of $1,483,027.5. The cost of sales was 27.3% of F & B revenue, and the departmental expenses were 43.2% of F & B revenue. What is the gross profit percentage for the hotel’s F&B department?

Gross profit percentage for the hotel's F&B department (round to one decimal point) ___%.

The manager of alarge hotel on the Riviera in southern France wanted to forecast the monthly vacancy rate (as a percentage) during the peak season.   After considering a long list of potential variables, she identified two variables that she believed were most closely related to the vacancy rate: the average daily temperature and the value of the currency in American dollars. She collected data for 23 months.

                  a.   Perform a regression analysis using a first-order model with interaction.

                  b.   Perform a regression analysis using a second-order model with interaction.

                  c.   Which model fits better? Explain.

Suppose the guests at the hotel have an average weight of 180 with a standard deviation of 50 pounds. An elevator is designed to carry only 10 people with a maximum capacity of 2400 pounds.

5. What is the mean of the sample mean?

6. What is the standard deviation for the sample mean of the 10 people? (Use 2 decimals)

7. If 10 guest ride the elevator at one time, what is the probability that the elevator is overweight? (Hint: If the 10 people weigh more than 2400 pounds, how much does each person have to weigh on average? (Use 4 decimals)

8. If 12 guests ride in the elevator at one time, now what is the probability that the elevator is overweight? (Hint: the standard deviation also changes here) (Use 4 decimals)