As the Manager of a Local Hotel Chain,you Have Hired

question 9

Essay

As the manager of a local hotel chain,you have hired an econometrician to estimate the demand for one of your hotels (H).The estimation has resulted in the following demand function:
Q_H = 2,000 - P_H - 1.5P_C - 2.25P_SE + 0.8P_OH + 0.01M,where P_H is the price of a room at your hotel,P_C is the price of concerts in your area,P_SE is the price of sporting events in your area,P_OH is the average room price at other hotels in your area,and M is the average income in the United States.What would be the impact on your firm of:
a.A $500 increase in income?
b.A $10 reduction in the price charged by other hotels?
c.A $7 increase in the price of tickets to local sporting events?
d.A $5 increase in the price of concert tickets,accompanied by an $8 increase in income?

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Definitions:

Short-Run Forecast

A prediction of future events or trends that is focused on a relatively immediate time frame.

HR Forecasting Process

The systematic process used by Human Resources to predict future staffing requirements based on current data, trends, and strategic plans.

Organizational Requirements

The needs or conditions that an organization must meet to achieve its objectives effectively.

HR Forecasting

The process of predicting future human resources needs of an organization based on current data, trends, and projected changes in the business environment.