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?