Analysis and Critique of the Rhoda Report
Bill Rhoda relies on several methods to determine whether it is necessary to construct a multi-purpose events center in Prescott Valley. In particular, one should speak about the analysis of demographic data in the area (Rhoda 1). Much attention is paid to the age structure of the population because younger people are more likely to attend this events center. Furthermore, the researcher focuses on the data about the median income in this community since it is another independent variable that can influence the financial performance of a venue. In turn, the author’s projections are partly based on the study of events centers located in other areas that are similar to Prescott Valley in terms of demographic and economic characteristics (Rhoda 1). In particular, the author concentrates on the financial performance of these venues to estimate the validity of revenue expectations that are set for the future arena in Prescott Valley. On the whole, his major argument is that income expectation is largely exaggerated. Thus, the return on investment can be much lower. These are the main findings that should be considered.
The author tested the validity of his findings by referring to the results of feasibility studies carried out in similar settings. Nevertheless, it is important to mention that these studies were completed in the early or mid-2000s, while the chosen research was completed in 2012 (Rhoda 6). One should keep in mind that the lifestyles of people can change significantly within six or seven years. This is one of the limitations that should be taken into account. Still, this limitation has to be accepted because the researcher had to focus on medium-sized venues located in areas comparable to Prescott Valley. Therefore, the author could choose from a limited number of projects. As it has been said before, the researcher examines the performance of similar venues. This comparison can be justified because in this way one can estimate the performance of events centers that can be constructed in such communities.
It should be kept in mind the researcher does not tell the readers if he used any statistical ways of analyzing data. This information is necessary for confirming the validity of the estimations made by the researcher. This argument is particularly relevant if one speaks about the projections about the financial performance of the venue that may be located in Prescott Valley. Additionally, the author does not tell how he determined the size of the sample. In other words, the researcher does explain how he determined the minimum number of projects that had to be studied. These are some of the drawbacks that should be considered by the readers of this report.
Nevertheless, it is possible to accept the findings derived by the author because the researcher clearly explains the main assumption which determined his estimations. In particular, the author is quite right in explaining the influence of age structure and median income level. Moreover, he convincingly demonstrates that the expectations of planners are not realistic by illustrating the performance of comparable venues. Thus, the findings should not be overlooked.
On the whole, this analysis shows that feasibility studies should incorporate demographic data about the community and the income level in the community. Additionally, it is critical to examine the results of comparable projects because, in this way, one can better estimate the feasibility of financial projections. However, one should make sure that the comparison can accurately reflect the influence of various independent variables. These are the main details that can be distinguished.
Works Cited
Rhoda, Bill. Evaluation of Financial and Operational Projections Related to the Prescott Valley Events Center, New York: CSL International, 2012. Print.