The Harriet Hotel in downtown Boston has 100 rooms that rent for $150 per night. It costs the hotel $30 per room in variable costs (cleaning, bathroom items, etc.) each night a room is occupied. For each reservation accepted, there is a 5% chance that the guest will not arrive. If the hotel overbooks, it costs $200 to compensate guests whose reservations cannot be honored. How many reservations should the hotel accept if it wants to maximize the average daily profit? Wk_8_Asg--Template XLSXFile Edit View InsertFormat Data Tools HelpLast edit was seconds agoDefault (Ca.B I S A100%.00 123-11- fx |A1ABFGHJKLM1Harriet Hotel, Boston3Rooms Available100DataProbability (No Show)40.05DataReservationsDecision: Vary betweento 115 using the DecTable in Crystal BallGuests ArrivingAssumption: Use binomial with P(Head) = 1- P(No Show) and number of tosses = Reservations61087Data$150$30$200Revenue$16,500Enter formulaVariable CostsEnter formula$3,000$1,600$11,90010Overbooking CostsEnter formula11ProfitForecast: Enter formula1213

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Description: The Harriet Hotel in downtown Boston has 100 rooms that rent for $150 per night. It costs the hotel $30 per room in variable costs (cleaning, bathroom items, etc.) each night a room is occupied. For each reservation accepted, there is a 5% chance tha

Given information: Available number of rooms in hotel = 100 Rent of room per night = $150 Variable…

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Probability

The Harriet Hotel in downtown Boston has 100 rooms that rent for $150 per night. It costs the hotel $30 per room in variable costs (cleaning, bathroom items, etc.) each night a room is occupied. For each reservation accepted, there is a 5% chance that the guest will not arrive. If the hotel overbooks, it costs $200 to compensate guests whose reservations cannot be honored. How many reservations should the hotel accept if it wants to maximize the average daily profit?

The Harriet Hotel in downtown Boston has 100 rooms that rent for $150 per night. It costs the hotel $30 per room in variable costs (cleaning, bathroom items, etc.) each night a room is occupied. For each reservation accepted, there is a 5% chance that the guest will not arrive. If the hotel overbooks, it costs $200 to compensate guests whose reservations cannot be honored. How many reservations should the hotel accept if it wants to maximize the average daily profit?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Topic Video

Question

Wk_8_Asg--Template XLSX
File Edit View Insert
Format Data Tools Help
Last edit was seconds ago
Default (Ca.
B I S A
100%
.00 123-
11
- fx |
A1
A
B
F
G
H
J
K
L
M
1
Harriet Hotel, Boston
3
Rooms Available
100
Data
Probability (No Show)
4
0.05
Data
Reservations
Decision: Vary between
to 115 using the Dec
Table in Crystal Ball
Guests Arriving
Assumption: Use binomial with P(Head) = 1- P(No Show) and number of tosses = Reservations
6
108
7
Data
$150
$30
$200
Revenue
$16,500
Enter formula
Variable Costs
Enter formula
$3,000
$1,600
$11,900
10
Overbooking Costs
Enter formula
11
Profit
Forecast: Enter formula
12
13

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