Question

Prompt: The objective of this case study is to analyze data and make recommendations for the improvement of the water quality in a local lake Describe the required data and the rationale for using the travel cost method. Prepare your analysis as though you were hired by an influential association of homeowners and businesses that are interested in the local lake's water quality. The analysis and recommendations you provide will help determine the benefits for improving the water quality of the lake. You must take the steps listed below to complete this case study Step 1 Describe the rationale for using the travel cost method. Compare the travel cost method to the contingent valuation method in your description. e Step 2 Define the zones surrounding the lake. These may be defined by concentric circles around the lake or by geographic divisions. Choose what makes sense, such as counties or other distinguishable boundaries that surround the lake at different distances. Add a graphic to enhance the definition and description. Step 3 Explain how you will collect data. Focus on the number of visitors from each zone and the number of visits made in the last year. For this example, assume the staff at the lake has records of the number of visitors and their zip codes. This will be used to calculate the total number of visits per zone over the last year. To extend the value of the analysis, explain the value of more precise data and what it takes to analyze this additional data. More information on this approach is found on the companion website to the course textbook (relevant pages for Chapter 7). Step 4 Calculate the visitation rates per 1,000 population in each zone. These are the total visits per year designated by each zone, divided by the zone's population in thousands. An example is shown below. Use Microsoft Excel (or something simila)tocalculate the rates. Visitation Rates per 1,000 P ion Total Visits/Year Population Visits/1,000 1,000 2,000 4,000 8,000 100 Beyond 3 Total Visits 1,600

Answer 1