Questions
Question 2 (20 marks) – ALL CALCULATIONS MUST BE SHOWN A local theme park is losing...

Question 2 – ALL CALCULATIONS MUST BE SHOWN

A local theme park is losing money. The current price of admission is $60 per person with an average daily attendance of 750 people. You are an independent consultant employed to recommend a pricing strategy. The demand schedule estimated by the consultant is shown in the table below.

Price

Quantity of tickets sold per day

Elasticity

0

1200

--

20

1050

40

900

60

750

80

600

100

450

120

300

140

150

160

0

Infinity

a. Fill in the blanks in the table above. There are 7 empty cells [marked as 0.5 marks per cell correctly filled]. Use the point method (ΔQ/ΔP)*(P/Q) to calculate the own-price elasticity of demand. (3.5 marks)

b. As a consultant what would be your recommendation regarding pricing strategy? Should the theme park change the price from $60? Justify your answer based on the price elasticity of demand. .

c. From the information in the table write the equation for the daily demand for theme park tickets in price dependent form (P=a-bQ). (2.5 marks)

d. Use the midpoint method to calculate the price elasticity of demand from $85 to $90. Explain whether demand is price elastic or price inelastic and interpret the value of this elasticity.

e. Theme park customers are able to purchase a $15 photographic package. At the current ticket price of $60, 34% of customers purchase photographic packages. The theme park estimates that a $3 price increase in theme park tickets would result in a 20% reduction in photographic packages purchased. Provide the name of, and calculate the value of, this elasticity. Interpret its value. What does this elasticity value tell the theme park managers about the relationship between theme park ticket prices and photographic packages? How many customers would purchase the photographic packages if theme park tickets increased by $3?

In: Economics

Georgia Movie Company has a capital structure with 43.00% debt and 57.00% equity. The cost of...

Georgia Movie Company has a capital structure with 43.00% debt and 57.00% equity. The cost of debt for the firm is 8.00%, while the cost of equity is 15.00%. The tax rate facing the firm is 35.00%.

The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $3.45 million, and it also expects cash flows from the movie operation to increase by 4.00% each year going forward. The company wants to examine the project over a 10.00-year period.

What is the NPV of this project? (express answer in millions, so 1,000,000 would be 1.00)

Submit

Answer format: Currency: Round to: 2 decimal places.

In: Finance

Case Study based question of 20 Marks (Total). From her experience, she knew that one way...

Case Study based question of 20 Marks (Total).
From her experience, she knew that one way to do this was to help her employees have successful and satisfying careers, and she was therefore concerned to find that the Hotel Paris had no career management process at all. Supervisors weren t trained to discuss employees developmental needs or promotional options during the performance appraisal interviews. Promotional processes were informal.
Lisa Cruz knew that as a hospitality business, the Hotel Paris was uniquely dependent upon having committed, high-morale employees. In a factory or small retail shop, the employer might be able to rely on direct supervision to make sure that the employees were doing their jobs. But in a hotel,
just about every employee is on the front line. There is usually no one there to supervise the limousine driver when he or she picks up a guest at the airport, or when the valet takes the guest s car, or the front-desk clerk signs the guest in, or the housekeeping clerk needs to handle a guest s specialrequest.
If the hotel wanted satisfied guests, they had to have committed employees who did their jobs as if they owned the company, even when the supervisor was nowhere in sight. But for the employees to be committed, Lisa knew the Hotel Paris had to make it clear that the company was alsocommitted to its employees. And the firm did not attempt to provide any career development services that might help its employees to develop a better understanding of what their career options were,
or should be. Lisa was sure that committed employees were the key to improving the experiences of its guests, and that she couldn t boost employee commitment without doing a better job of attending to her employees career needs.
For Lisa and the CFO, preliminary research left little doubt about the advisability of instituting a new career management system at the Hotel Paris. The CFO therefore gave the go-ahead to design and institute a new Hotel Paris career management program. Lisa and her team knew that they
already had some of the building blocks in place, thanks to the new performance management system they had instituted just a few weeks earlier (as noted in the previous
chapter). For example, the new performance management system required that the supervisor appraise the employee based on goals and competencies that were driven by the company s strategic needs, and the appraisal itself produced new goals for the coming year and specific development plans for the employee.
Questions
6) Many hotel jobs are inherently dead end ; for example, maids, laundry workers, and valets either have no great aspirations to move up, or are just using these jobs temporarily, for instance, to help out with household expenses. First, do you agree with this statement why, or why not?
Second, list three specific career activities you would recommend Lisa implement for these employees.

In: Economics

As manager of the Best Drinks Company in Hayward, you would like to sell drinks at...

As manager of the Best Drinks Company in Hayward, you would like to sell drinks at a booth during the major celebration in the Hayward’s Central Park. The following table provides information about the drinks that you will be selling: You estimate labor cost to be $600 (2 people, $300 dollars each per day at the booth). Even if nothing is sold, your labor cost will be still $600, so you decide to consider this a fixed cost. Booth rental, $400, is also a fixed cost. Apply the total fixed cost for your break-even analysis, and do not annualize the fixed cost.

Items Price per unit, $ Var. cost per unit, $ % of Sales
Soft drinks 1.50 0.45 0.20
wine 5.29 2.76 0.15
Coffee 1.99 0.76 0.30
Tea 1.50 0.35 0.05
Water 1.00 0.29 0.30

Questions What is the break-even volume (in dollars) for selling drinks at the booth? Show your calculations manually or use Excel. How much would you expect to sell at the break-even point? Present and explain your calculations.

In: Finance

Question:5 What is meant by the standard error of the mean? What is meant by a...

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?

  1. 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                                  

In: Statistics and Probability

Nilam Patel is the primary stockholder in two hotel corporations. One corporation owns a 90‐room economy...

Nilam Patel is the primary stockholder in two hotel corporations. One corporation owns a 90‐room economy property located in the suburbs of a large western town. The other corporation is a 350‐room full‐service convention hotel in the downtown city center for which Nilam has employed a management company to operate the property. Nilam is preparing balance sheets for both properties using a common size format. Complete the two balance sheets. Then answer the questions that follow.

December 31 Common Size
90‐Room Property 350‐Room Property 90‐Room Property (%) 350‐Room Property (%)
ASSETS
Current Assets
    Cash
         Cash in House Banks $86,000
         Cash in Demand Deposits 85,000 330,250
                                        Total Cash 103,500 416,250
     
Short‐Term Investments 56,000 165,000
Receivables
         Accounts Receivable 150,000 327,150
         Notes Receivable 35,000 136,250
         Other 750 30,800
                                 Total Receivables 185,750 494,200
         Less Allowance for Doubtful Accounts 19,250
                                 Net Receivables 166,500 431,900 1.4 1.1
         Due from Management Company — 50,000 0.0 0.1
         Food Inventories 15,125 69,750 0.1 0.2
         Beverage Inventories — 42,550 0.0 0.1
         Gift Shop Inventories 300 6,950 0.0 0.0
         Supplies Inventories 6,550 13,550 0.1 0.0
         Prepaid Expenses 56,000 120,100 0.5 0.3
         Deferred Income Taxes—Current 48,000 135,000 0.4 0.3
                                 Total Current Assets
Investments 72,500 274,150 0.6 0.7
Property and Equipment
    Land 2,000,000 8,450,000
    Building 6,500,000 18,500,000
    Leaseholds and Leasehold improvements 2,037,250 5,850,000
    Furnishings and Equipment 1,288,000 3,105,000
         Total Property and Equipment 11,825,250 35,905,000
    Less Accumulated Depreciation and Amortization 575,000 2,575,000
         Net Property and Equipment 11,250,250 38,480,000
Other Assets
    Intangible Assets — 75,000 0.0 0.2
    Deferred Income Taxes—Non‐current 66,000 158,000 0.6 0.4
    Operating Equipment 35,100 111,000 0.3 0.3
    Restricted Cash 25,000 95,000 0.2 0.2
                         Total Other Assets 126,100 439,000 1.1 1.1
TOTAL ASSETS 100.0 100.0
LIABILITIES AND OWNERS' EQUITY
Current Liabilities
    Notes Payable
        Banks 17,500 116,250 0.1 0.3
        Others 8,000 17,500 0.1 0.0
                 Total Notes Payable 25,500 133,750 0.2 0.3
    Accounts Payable 2,500 125,100
    Accrued Expenses 45,000 42,500
    Advance Deposits 500 42,250
    Income Taxes Payable 15,000 78,000
    Deferred Income Taxes—Current 40,000 235,000
    Current Maturities of Long‐Term Debt 420,000
    Other 50,000 58,000
           Total Current Liabilities 598,500 2,399,600 5.0 5.9
Long‐term Debt, Net of Current Maturities
    Mortgage Note 24,383,030
    Obligations Under Capital Leases 18,000 385,000 0.2 0.9
          Total Long‐Term Liabilities 6,868,000
Owners' Equity
    Common Stock 500,000 2,000,000
    Paid in Capital 8,711,500
    Retained Earnings 879,325 2,765,070
                   Total Owners' Equity 4,434,325 13,476,570
TOTAL LIABILITIES AND OWNERS' EQUITY 100 100
  1. What was the amount of cash in the 90‐room property's Cash in House Banks account at year end?
  2. What is the amount of Allowance for Doubtful Accounts in the 350‐room property? Do you think it is excessive? Explain your answer?
  3. What would explain the lack of a beverage inventory value in the 90‐room hotel?
  4. What was the dollar amount of Total Assets in the 90‐room hotel?
  5. What was the dollar amount of Total Assets in the 350‐room hotel?
  6. What was the dollar amount of Current Maturities of Long‐Term Debt in the 350‐room property? Why is that amount likely so much higher than for the 90‐room property?
  7. What was the dollar amount of Paid in Capital for the 90‐room property?
  8. What is the Owners' Equity percentage of Total Assets in the 90‐room property? What is it in the 350‐room property?

In: Accounting

8. BONUS: Nilam Patel is the primary stockholder in two hotel corporations. One corporation owns a...

  1. 8. BONUS: Nilam Patel is the primary stockholder in two hotel corporations. One corporation owns a 90‐room economy property located in the suburbs of a large western town. The other corporation is a 350‐room full‐service convention hotel in the downtown city center for which Nilam has employed a management company to operate the property. Nilam is preparing balance sheets for both properties using a common size format. Complete the two balance sheets. Then answer the questions that follow.

    Nilam Patel's Two Hotel's Balance Sheets

    December 31 Common Size
    90‐Room Property 350‐Room Property 90‐Room Property (%) 350‐Room Property (%)
    ASSETS
    Current Assets
        Cash
             Cash in House Banks $86,000
             Cash in Demand Deposits 85,000 330,250
                                            Total Cash 103,500 416,250
         
    Short‐Term Investments 56,000 165,000
    Receivables
             Accounts Receivable 150,000 327,150
             Notes Receivable 35,000 136,250
             Other 750 30,800
                                     Total Receivables 185,750 494,200
             Less Allowance for Doubtful Accounts 19,250
                                     Net Receivables 166,500 431,900 1.4 1.1
             Due from Management Company — 50,000 0.0 0.1
             Food Inventories 15,125 69,750 0.1 0.2
             Beverage Inventories — 42,550 0.0 0.1
             Gift Shop Inventories 300 6,950 0.0 0.0
             Supplies Inventories 6,550 13,550 0.1 0.0
             Prepaid Expenses 56,000 120,100 0.5 0.3
             Deferred Income Taxes—Current 48,000 135,000 0.4 0.3
                                     Total Current Assets
    Investments 72,500 274,150 0.6 0.7
    Property and Equipment
        Land 2,000,000 8,450,000
        Building 6,500,000 18,500,000
        Leaseholds and Leasehold improvements 2,037,250 5,850,000
        Furnishings and Equipment 1,288,000 3,105,000
             Total Property and Equipment 11,825,250 35,905,000
        Less Accumulated Depreciation and Amortization 575,000 2,575,000
             Net Property and Equipment 11,250,250 38,480,000
    Other Assets
        Intangible Assets — 75,000 0.0 0.2
        Deferred Income Taxes—Non‐current 66,000 158,000 0.6 0.4
        Operating Equipment 35,100 111,000 0.3 0.3
        Restricted Cash 25,000 95,000 0.2 0.2
                             Total Other Assets 126,100 439,000 1.1 1.1
    TOTAL ASSETS 100.0 100.0
    LIABILITIES AND OWNERS' EQUITY
    Current Liabilities
        Notes Payable
            Banks 17,500 116,250 0.1 0.3
            Others 8,000 17,500 0.1 0.0
                     Total Notes Payable 25,500 133,750 0.2 0.3
        Accounts Payable 2,500 125,100
        Accrued Expenses 45,000 42,500
        Advance Deposits 500 42,250
        Income Taxes Payable 15,000 78,000
        Deferred Income Taxes—Current 40,000 235,000
        Current Maturities of Long‐Term Debt 420,000
        Other 50,000 58,000
               Total Current Liabilities 598,500 2,399,600 5.0 5.9
    Long‐term Debt, Net of Current Maturities
        Mortgage Note 24,383,030
        Obligations Under Capital Leases 18,000 385,000 0.2 0.9
              Total Long‐Term Liabilities 6,868,000
    Owners' Equity
        Common Stock 500,000 2,000,000
        Paid in Capital 8,711,500
        Retained Earnings 879,325 2,765,070
                       Total Owners' Equity 4,434,325 13,476,570
    TOTAL LIABILITIES AND OWNERS' EQUITY 100 100
    1. What was the amount of cash in the 90‐room property's Cash in House Banks account at year end?
    2. What is the amount of Allowance for Doubtful Accounts in the 350‐room property? Do you think it is excessive? Explain your answer?
    3. What would explain the lack of a beverage inventory value in the 90‐room hotel?
    4. What was the dollar amount of Total Assets in the 90‐room hotel?
    5. What was the dollar amount of Total Assets in the 350‐room hotel?
    6. What was the dollar amount of Current Maturities of Long‐Term Debt in the 350‐room property? Why is that amount likely so much higher than for the 90‐room property?
    7. What was the dollar amount of Paid in Capital for the 90‐room property?
    8. What is the Owners' Equity percentage of Total Assets in the 90‐room property? What is it in the 350‐room property?

In: Accounting

In the 2009 film 2012, there is a scene in which a supervolcano erupts under Yellowstone...

In the 2009 film 2012, there is a scene in which a supervolcano erupts under Yellowstone National Park. It has been fairly recently discovered that in at least some volcanic eruptions, the magnetic field of the earth is reversed in the region of the volcano (only while it is erupting). The magnetic field during this eruption would have a magnitude of 5.3 ⋅ 10−4 ? and be oriented 68.6∘ south of down. During the eruption, there is a pyroclastic flow (this is the fast lava-looking “liquid” that flows down the volcano first), which can move at speeds upwards of 200 ?⁄?. One particular rock flowing in this has a mass of 150 ????? and an electric charge of +1.2 ⋅ 104 ?.

  1. Find the Lorentz (magnetic) force (magnitude and direction) acting on this rock when it has just started flowing near the top of the volcano. At this point, it flows at a speed of 50 ?⁄? vertically downward.

  2. Find the Lorentz (magnetic) force (magnitude and direction) acting on this rock when it has just reached the bottom of the volcano. At this point, it flows at a speed of 200 ?⁄? horizontally east.

In: Physics

Total value of corporate shares $500 billion    Currency outside chartered banks $48 billion    Chequable...

Total value of corporate shares

$500 billion

   Currency outside chartered banks

$48 billion

   Chequable notice deposits at chartered banks

$108 billion

   Publicly held demand deposits at chartered banks

$51 billion

   Federal government bonds

$643 billion

   Other liquid assets included in M2+

$38 billion

   Nonpersonal term and foreign-currency deposits at chartered banks

$274 billion

   Personal term deposits at chartered banks

$140 billion

   Non-chequable notice deposits at chartered banks

$100 billion

   Chequable notice deposits at near banks

$95 billion

   Personal term deposits at near banks

$120 billion

   Non-chequable notice deposits at near banks

$80 billion

Based on this data calculate:

a) M1 +

b) M2

c) M3

d) M2+

In: Economics

Forecasting labour costs is a key aspect of hotel revenue management that enables hoteliers to appropriately...

Forecasting labour costs is a key aspect of hotel revenue management that enables hoteliers to appropriately allocate hotel resources and fix pricing strategies. Mary, the President of Hellenic Hoteliers Federation (HHF) is interested in investigating how labour costs (variable L_COST) relate to the number of rooms in a hotel (variable Total_Rooms). Suppose that HHF has hired you as a business analyst to develop a linear model to predict hotel labour costs based on the total number of rooms per hotel using the data provided.

3.1 Use the least squares method to estimate the regression coefficients b0 and b1

3.2 State the regression equation

3.3 Plot on the same graph, the scatter diagram and the regression line

3.4 Give the interpretation of the regression coefficients b0 and b1 as well as the result of the t-test on the individual variables (assume a significance level of 5%)

3.5 Determine the correlation coefficient of the two variables and provide an interpretation of its meaning in the context of this problem 3.6 Check statistically, at the 0.05 level of significance whether there is any evidence of a linear relationship between labour cost and total number of rooms per hotel

I need only the 3.4 and 3.5 questions.

Total_Rooms   L_COST
412   2.165.000
313   2.214.985
265   1.393.550
204   2.460.634
172   1.151.600
133   801.469
127   1.072.000
322   1.608.013
241   793.009
172   1.383.854
121   494.566
70   437.684
65   83.000
93   626.000
75   37.735
69   256.658
66   230.000
54   200.000
68   199.000
57   11.720
38   59.200
27   130.000
47   255.020
32   3.500
27   20.906
48   284.569
39   107.447
35   64.702
23   6.500
25   156.316
10   15.950
18   722.069
17   6.121
29   30.000
21   5.700
23   50.237
15   19.670
8   7.888
20  
11  
15   3.500
18   112.181
23  
10   30.000
26   3.575
306   2.074.000
240   1.312.601
330   434.237
139   495.000
353   1.511.457
324   1.800.000
276   2.050.000
221   623.117
200   796.026
117   360.000
170   538.848
122   568.536
57   300.000
62   249.205
98   150.000
75   220.000
62   50.302
50   517.729
27   51.000
44   75.704
33   271.724
25   118.049
42  
30   40.000
44  
10   10.000
18   10.000
18  
73   70.000
21   12.000
22   20.000
25   36.277
25   36.277
31   10.450
16   14.300
15   4.296
12  
11  
16   379.498
22   1.520
12   45.000
34   96.619
37   270.000
25   60.000
10   12.500
270   1.934.820
261   3.000.000
219   1.675.995
280   903.000
378   2.429.367
181   1.143.850
166   900.000
119   600.000
174   2.500.000
124   1.103.939
112   363.825
227   1.538.000
161   1.370.968
216   1.339.903
102   173.481
96   210.000
97   441.737
56   96.000
72   177.833
62   252.390
78   377.182
74   111.000
33   238.000
30   45.000
39   50.000
32   40.000
25   61.766
41   166.903
24   116.056
49   41.000
43   195.821
9  
20   96.713
32   6.500
14   5.500
14   4.000
13   15.000
13   9.500
53   48.200
11   3.000
16   27.084
21   30.000
21   20.000
46   43.549
21   10.000

In: Statistics and Probability