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The Hilton Hotel at Dallas has 100 total rooms available for Dec 31. There are two types of customers, business customers and leisure customers. Hilton charges a high rate of $300/night and a low rate of $120/night. High-rate guests do not need pre-booking and has time flexibilities; low-rate guests need pre- booking. Assume business customers always take the high rate option and leisure customers always take the low rate option. Leisure customers always book far earlier before business customers and there are sufficient leisure customers. The total number of business customers is uncertain, and its demand distribution for business customers on Dec 31st is given in the following table: Number of business customers Probability 56 0.06 57 0.08 58 0.12 59 014 60 0.2 61 0.16 62 0.14 63 0.1

The Hilton Hotel at Dallas has 100 total rooms available for Dec 31. There are two types of customers, business customers and leisure customers. Hilton charges a high rate of $300/night and a low rate of $120/night. High-rate guests do not need pre-booking and has time flexibilities; low-rate guests need pre- booking. Assume business customers always take the high rate option and leisure customers always take the low rate option. Leisure customers always book far earlier before business customers and there are sufficient leisure customers. The total number of business customers is uncertain, and its demand distribution for business customers on Dec 31st is given in the following table: Number of business customers Probability 56 0.06 57 0.08 58 0.12 59 014 60 0.2 61 0.16 62 0.14 63 0.1

Practical Management Science
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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mestion Completion Status: The Hilton Hotel at Dallas has 100 total rooms available for Dec 31. There are two types of customers, business customers and leisure customers. Hilton charges a high rate of $300/night and a low rate of $120/night. High-rate guests do not need pre-booking and has time flexibilities; low-rate guests need pre booking. Assume businesSS customers always take the high rate option and leisure customers always take the low rate option. Leisure customers always book far earlier before business customers and there are. sufficient leisure customers. The total number of business customers is uncertain, and its demand distribution for business customers on Dec 31st is given in the following table: Number of business customers Probability 56 0.06 57 0.03 58 0.12 59 014. 60 0.2 61 0.16 62 0.14 63 0. How many rooms should Hilton sell in advance to maximize its revenue? 39 O a. b 40 ard" ヘ a
Transcribed Image Text:mestion Completion Status: The Hilton Hotel at Dallas has 100 total rooms available for Dec 31. There are two types of customers, business customers and leisure customers. Hilton charges a high rate of $300/night and a low rate of $120/night. High-rate guests do not need pre-booking and has time flexibilities; low-rate guests need pre booking. Assume businesSS customers always take the high rate option and leisure customers always take the low rate option. Leisure customers always book far earlier before business customers and there are. sufficient leisure customers. The total number of business customers is uncertain, and its demand distribution for business customers on Dec 31st is given in the following table: Number of business customers Probability 56 0.06 57 0.03 58 0.12 59 014. 60 0.2 61 0.16 62 0.14 63 0. How many rooms should Hilton sell in advance to maximize its revenue? 39 O a. b 40 ard" ヘ a
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