Qd = β0 +β1Psh +β2M+β3Pcg+β4Ax+ β5C Where, Qd = Quantity demand for a deluxe room in sh Psh = Price of a deluxe room in sh (US$/room) = US$. 200.00 M = Visitors per capita income (US$/Day) = US$ 120 Pcg = Price of a deluxe room in CG (US$/room) = US$. 150.00 Ax = Average advertising expenditure in sh (US$/room) US$. 18.00 C = Customer Satisfaction Index = 8.56 DV: Q R- Square: 0.86 T table value 1.671 No of obse: 62 F- Ratio: 154.15 Var Para Esti SE β0 127.8 49.6 β1 -1.3.0 0.42 β2 2.75 1.01 β3 2.55 1.21 β4 1.41 0.48 β5 1.85 0.23 a) Are estimated parameters comparable with economic theory? why ,What are the significant parameters that could be impact on the demand for a deluxe room b) Construct the Total Revenue (TR) function of Sh hotel and determine the TR maximize demand c) Calculate and interpret, cross-price elasticity, income elasticity, and advertising elasticity of demand for a deluxe room and Calculate Adjusted R2 and interpret it.
Qd = β0 +β1Psh +β2M+β3Pcg+β4Ax+ β5C
Where,
Qd = Quantity
Psh =
M = Visitors per capita income (US$/Day) = US$ 120
Pcg = Price of a deluxe room in CG (US$/room) = US$. 150.00
Ax = Average advertising expenditure in sh (US$/room) US$. 18.00
C = Customer Satisfaction Index = 8.56
DV: Q R- Square: 0.86 T table value 1.671
No of obse: 62 F- Ratio: 154.15
Var Para Esti SE
β0 127.8 49.6
β1 -1.3.0 0.42
β2 2.75 1.01
β3 2.55 1.21
β4 1.41 0.48
β5 1.85 0.23
a) Are estimated parameters comparable with economic theory? why ,What are the significant parameters that could be impact on the demand for a deluxe room
b) Construct the Total Revenue (TR) function of Sh hotel and determine the TR maximize demand
c) Calculate and interpret, cross-price elasticity, income elasticity, and advertising
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