Suppose a Marriot offers a $159 discount rate for a midweek stay. Its regular rate is $225.
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Suppose a Marriot offers a $159 discount rate for a midweek stay. Its regular rate is $225. The hotel has 118 rooms. Suppose it is April 1 and the Marriott wants to maximize profit from May 29 bookings. The Marriott knows it can fill all rooms at the discounted price, but to maximize profit it must reserve or protect some rooms at the high price. Because business travelers book late, the hotel decides to protect or reserve rooms for late-booking business customers. The question is how many rooms to protect. The number of business travelers who will reserve a room is unknown, and you can assume it is normal with the mean = 27.3 and a standard deviation of
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Marketing Analytics: Data-Driven Techniques With Microsoft Excel
ISBN: 216520
1st Edition
Authors: Wayne L Winston
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