|At the Pleasant Haven Hotel there are 36 rooms. The profit earned when a room is sold for a night is $53.If Pleasant Haven overbooks, by selling more reservaitions than they have rooms and they end uphaving a customer whose reservation cannot be fulfilled, the loss to Pleasant Haven is $30 for that customer.Regardless of the number of rooms booked, the probability of one no show is 60% and the probabilityof 2 no shows is 20%. There is zero probability of more than 2 no shows.For a night when requests are exceeding the 36 rooms, what is the optimal number of reservations to accept?Assume there is no penalty for a customer who does not show up, i.e., Pleasant Haven does not make $53 ona customer that is a no show.What is the expected net for booking each of the following: (Net means profit minus any overbooking loss.)36 customers37 customers38 customersWhat is the best number of book?

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Answered: |At the Pleasant Haven Hotel there are…

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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