Question

a. When a hotel's room revenue forecasts are consistently and unrealistically too low they...

	A.	cause unrealistic high profit expectations by the hotel's owners.
	B.	result in over-aggressive room rate determinations and rates that are set too high.
	C.	result in under-aggressive room rate determinations and rates that are set too low.
	D.	produce budgeting / spending errors by overstating anticipated revenues.

b. A restaurant manager served 3,000 guests last January. For this coming January, they predict a decrease in guests served of 8.0%. What will be the number of guests this manager will forecast to serve this coming January?

	A.	2,240
	B.	2,760
	C.	3,760
	D.	3,240

c. The primary business purpose of using regression analysis in the creation of a trend line is to...

	A.	predict past (known) values.
	B.	predict future (unknown) values.
	C.	match expenses to revenues.
	D.	establish selling prices.

d. Which is one important purpose of a hotel's rooms occupancy forecast?

	A.	Identifying period of low room demand
	B.	Helping to improve employee scheduling
	C.	Helping to manage hotel cash flow
	D.	Identifying periods in which occupancy will exceed 100%

Answer 1

a) C. result in under-aggressive room rate determinations and rates that are set too low. Correct option

b) Last January guests = 3000

Coming January decrease of 8% = Last January guest*(1-decrease)

= 3000*.92 = 2760 guests

B 2760

c) B. predict future (unknown) values. Correct option

d) C. Helping to manage hotel cash flow. Correct option

According to the room occupancy estimates employees various expenses need to be balanced and matched according to revenue forecasts.