Chap 3: Estimation in Event Revenue...

The musical "Chicago" is coming to town! The event manager intends to hold the performance in the Esplanade Theatre. He saw the following poster.
Poster produced by Tan Jian Hui S1-01
The event manager intend to run 20 shows, and he is pretty sure that all the tickets will be sold out. Charging a flat rate of $180 per ticket, it is going to earn $100 for each ticket sold. He used a calculator to work out the revenue, which turned out to be $4,000,000 (exactly). He jumped in excitement.
  • Do you think he has done a good calculation? Why?
Explain your thoughts in the Comments.

23 comments:

  1. No/Yes it could be correct or wrong,since we do not know which of the numbers are exact and which are the numbers are estimated.Thus it could be wrong or right

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  2. No, I do not think he has made a good calculation. There may be tickets which will not be bought and there is also the cost of rental of the shows, the fees of the props, the maintenance fees and the salaries of the people involved.

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  3. Probably. It depends on the figures being exact or estimated.

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  4. No, as the numbers on the posters may be rounded up, like the amount of seats in the theatre and concert hall. Since the figure is not exact, the amount of money the manager is going to earn may not be 4 million exactly.

    chengngee

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  5. Maybe... since not all the tickets will be sold a the manager assumed hat they will be sold out

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  6. The manager is just predicting that the tickets will be sold out completely but how is he that sure? If not all the tickets are sold, he would probably not earned that much as he thought he would. Also, some of the figures in the poster that the manager used to come up with a profit may also be estimated.

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  7. no because we do not know which numbers have been rounded up or down and which numbers has been estimated

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  8. No, I do not think it is a good calculation as not all the tickets may be bought.

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  9. I think he has not done a good calculation. Because the tickets might not be able to be sold out.

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  10. No. He did not include the pay of the performers and the rent of the place of performances. All the shows may not 100% full of people, so he will not earn that much profit.

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  11. No, even though he thinks that all the tickets will be sold out, some of them may not be sold and the numbers on the poster may also not be exact. Therefore, the revenue earned may not be the exact amount predicted by the event manager.

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  13. There are 2000 seats in the Esplanade Theatre and the event manager intends to run 20 shows. He will earn $100 for each ticket sold. If the tickets are all sold out, he will earn exactly $4,000,000.

    He has done a bad calculation as it is a rough prediction. Perhaps the show is not yet popular and therefore not all tickets are sold.

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  14. Not really. The numbers on the poster may be estimated(eg. 7,000,000 vistors). Therefore, the manager may not earn 4 million. It really depends whether the tickets would all be sold out.

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  15. No, the event manager isn't sure which one is exact or which one is estimated. The event manager is just assuming and is not all true. The outcome may vary.

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  16. No, because the number of tickets sold may varied.

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  17. Yes. There are 2000 seats in the concert hall, and since the manager will earn $100 per ticket, we take $100 x 2000. That will give us 200000. So the manager will earn 200000 per show. Since there are 20 shows, we take 200000 x 20, which will give us 4000000. So the manager will earn 4000000.

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  18. The number of seats is not exact too.

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  19. Yes, as it is a popular band, the tickets will probably be sold out.

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  20. He will earn less than 4 million as there are only 1600 seats and the event manager will earn 100 dollar for each person, 1600x100 dollar is equal 160,000 dollar. So the event manager will only earn 160k instead of 4 million dollar.

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  21. The number of seats is not accurate and so the answer is not correct

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  22. There are 2000 seats in the Esplanade Theatre and if he runs twenty shows, that means 40000 people would be able to come to see it.
    However, it might not be guaranteed that all the tickets would be sold. Thus, he has done a bad calculation as he might not surely get $4,000,000 exactly.

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  23. No, because it is not certain that all tickets would be sold out. The manager just assumed the numbers, he doesn't know which is accurate and which is estimated, this can result in inaccurate numbers and calculations.

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