Question
Happy Valley is the only available camping area in Rural County.It is owned by the county, which allows free access to campers.Almost all visitors to
Happy Valley is the only available camping area in Rural County.It is owned by the county, which allows free access to campers.Almost all visitors to Happy Valley come from the six towns in the county.
Rural County is considering leasing Happy Valley for logging, which would require that it be closed to campers. Before approving the lease, the county executive would like to know the magnitude of annual benefits that campers would forgo if Happy Valley were to be closed to the public.
An analyst for the county has collected data for a travel cost study to estimate the benefits of Happy Valley camping. On five randomly selected days, he recorded the license plates of vehicles parked overnight in the Happy Valley lot. (As the camping season is 100 days, he assumed that this would constitute a 5 percent sample.) With cooperation from the state motor vehicle department, he was able to find the town of residence of the owner of each vehicle. He also observed a sample of vehicles from which he estimated that each vehicle carried 3.2 persons (1.6 adults), on average. The following table summarizes the data he collected:
Town | Travel Time (Hours) | Miles from Happy Valley | Visit Rate (5% of total number of visits) |
A | 1 | 22 | 77.7 |
B | 1.5 | 34 | 65 |
C | 2 | 48 | 57.6 |
D | 2.5 | 56 | 53.4 |
E | 4 | 88 | 19.8 |
F | 4.5 | 94 | 11 |
Calculate the value of the camping area for each zone and the overall value for the amenity.
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