Hotel ReservationsA hotel near the university always fills up in the evening before football games. History has shown that when the hotel is fully booked, the number of last-minute cancellations has a mean of 5 and a standard deviation of 3. The average room rate is $80. When the hotel is overbooked, the policy is to find a room in a nearby hotel and to pay for the room for the customer. This usually costs the hotel approximately $200 because rooms booked on such late notice are expensive. How many rooms should the hotel overbook?
Hotel ReservationsA hotel near the university always fills up in the evening before football games. History has shown that when the hotel is fully booked, the number of last-minute cancellations has a mean of 5 and a standard deviation of 3. The average room rate is $80. When the hotel is overbooked, the policy is to find a room in a nearby hotel and to pay for the room for the customer. This usually costs the hotel approximately $200 because rooms booked on such late notice are expensive. How many rooms should the hotel overbook?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Hotel Reservations
A hotel near the university always fills up in the evening before football games. History has shown that when the hotel is fully booked, the number of last-minute cancellations has a mean of 5 and a standard deviation of 3. The average room rate is $80. When the hotel is overbooked, the policy is to find a room in a nearby hotel and to pay for the room for the customer. This usually costs the hotel approximately $200 because rooms booked on such late notice are expensive. How many rooms should the hotel overbook?
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