Question
A hotel has a capacity of 150 rooms and is deciding between two policies for accepting reservations. Policy 1 accepts reservations for up to 150
A hotel has a capacity of 150 rooms and is deciding between two policies for accepting reservations.
Policy 1 accepts reservations for up to 150 rooms. Policy 2 accepts reservations for up to 152 rooms.
The Revenue per room filled is $1000. The Cost (penalty) of denying any guest a room is $2200. These is no charge to customers who do not show for their reservation
The following probability distributions represent the number of guests showing up to the hotel:
(Policy 1) # Who Showup 147 148 149 150
Probability .2 .25 .3 .25
(Policy 2) # Who Showup 149 150 151 152
Probability .2 .25 .25 .3
Set RN to =RAND(). Use a Data Table to simulate 100 trials for both Policy 1 and Policy 2.
What is the average profit for policy 1?
What is the average profit for policy 2 given the above information?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started