The following requirement is based on infomnation in the Atlantic City Casino case, case 2-33 at the end of Chapter 2. Re-read the case and complete the requirements below.

REQUIRED:

1. Using the data provided in the case, build a cost estimation model to predict net income based on total revenues. Then, use this model to detenmine an estimate of the industry-wide breakeven point in sales revenue. Evaluate the reliability and precision of the estimation method you have chosen.

2. Develop a cost estimation model to predict casino revenues based on square feet of casino floor space. Use this model to detemiine the expected full-year revenue for casino number nine. Evaluate the precision and reliability of the method you have chosen.

3. Repeat part (2) above, using number of rooms to predict room revenues, and number of restaurants to predict food and beverage revenues for the full year for casino number nine.