2013-04-19-Elasticity
Table of Contents
1 Homework
- Find price elasticity
- Data in
code/price-elasticity.csv - Your choice of solving technology
2 Data
| DOW | Rooms | Rate |
| 1 | 700 | $216.79 |
| 1 | 1020 | $201.64 |
| 1 | 1327 | $136.60 |
| 1 | 2087 | $118.10 |
| 1 | 757 | $179.12 |
| 1 | 90 | $258.73 |
| 1 | 1489 | $136.37 |
| 1 | 781 | $165.35 |
| 1 | 209 | $287.84 |
3 Data meanings
- DOW: 1 == Sunday
- Weekends are nights going into a weekend, ie Friday, Saturday, ie 6 & 7
4 Result
- What is the price elasticity of weekday prices?
- What is the price elasticity of weekend prices?
- If we are currently forecast to be at 1000 rooms at $200 rate with 100
available capacity, what price should we set to optimize max revenue for
both
- Weekday
- Weekend
5 Excel
LN() Options > Add-Ins > Analysis ToolPak > Go > ToolPak Data Analysis > Regression > Y Range, X Range
6 Python
from math import log, exp from scipy.stats import linregress slope, intercept, r_value, p_value, std_err = linregress(indep, depend)