The attraction's daily demand for admissions is estimated to be Qd = 140-P+35 WE- 60 R,...

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The attraction's daily demand for admissions is estimated to be Qd = 140-P+35 WE- 60 R, where - Qd is the daily number of visitors to the site; -P is the admission charge in Mexican pesos; - WE is a categorical variable taking values of 0 or 1, with 1 indicating a weekend or a holiday and 0 indicating weekdays; and -R is a categorical variable taking a value of 1 if it rained on a given day and 0 if it did not. (It's an outdoor exhibit, after all.) The costs of managing the site depend on the flow of visitors. The approximate data on daily costs are provided in the "El Rey" file. a. (1.5 pts) If no rain is forecasted for next week, write down the simplified demand equation for weekdays. b. (3 pts) How much should El Rey management charge for admission on weekdays of that week if they want to maximize their profit? Once again, assume no rain in the forecast and show your work. The attraction's daily demand for admissions is estimated to be Qd = 140-P+35 WE- 60 R, where - Qd is the daily number of visitors to the site; -P is the admission charge in Mexican pesos; - WE is a categorical variable taking values of 0 or 1, with 1 indicating a weekend or a holiday and 0 indicating weekdays; and -R is a categorical variable taking a value of 1 if it rained on a given day and 0 if it did not. (It's an outdoor exhibit, after all.) The costs of managing the site depend on the flow of visitors. The approximate data on daily costs are provided in the "El Rey" file. a. (1.5 pts) If no rain is forecasted for next week, write down the simplified demand equation for weekdays. b. (3 pts) How much should El Rey management charge for admission on weekdays of that week if they want to maximize their profit? Once again, assume no rain in the forecast and show your work.

Answer rating: 100% (QA)

a If no rain is forecasted R0 and it is a weekday WE0 then the s... View the full answer