1. Define price sensitivity (elasticity). Explain how price sensitive you think each market segment included in this simulation is. Discuss the implications for each segment.
2. Please define the first three terms and answer the two questions that follow:
   1. REVPAR
   2. Total REVPAR
   3. GOPAR
   4. Discuss why you think that managers need to pay attention to RevPAR, Total RevPAR, and GOPAR.
   5. Which of the three indicators do you think is the most important one, and why?

4. Explain Yield Management

a. How is Yield Management defined?

b. Why do managers need to pay attention to Yield Management?

c. What is an acceptable range for Yield Management?

d. Explain and discuss the implications if your hotels yield is above 100% and if it is below 30%?

12. What are the five major classes of financial ratios?
    1. Which of these classes of ratios are most important to managers and why?
    2. Which ones are most important to current or potential investors and why?
    3. Which ones are most important to banks and why?

6. What is the difference between absolute magnitude and relative magnitude (when calculating the difference between your results, performance measures, and your objectives? Which criterion (absolute or relative) is better to measure a performance gap, and why?