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The interContinental Hotel at Tsim Sha Tsui has 100 total rooms available for Dec 31. There are two types of customers, business customers and leisure customers. InterContinental 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. Which of the following actions would increase the optimal protection level for business customers? Increase both the high and low rates by a factor of two Decrease the high rate from $300 to $200 O Decrease both the high and low rates by half O Decrease both the high and low rates by $20 Increase both the high and low rates by $20

The interContinental Hotel at Tsim Sha Tsui has 100 total rooms available for Dec 31. There are two types of customers, business customers and leisure customers. InterContinental 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. Which of the following actions would increase the optimal protection level for business customers? Increase both the high and low rates by a factor of two Decrease the high rate from $300 to $200 O Decrease both the high and low rates by half O Decrease both the high and low rates by $20 Increase both the high and low rates by $20

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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The interContinental Hotel at Tsim Sha Tsui has 100 total rooms available for Dec 31. There are two types of customers, business customers and leisure customers. InterContinental 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. Which of the following actions would increase the optimal protection level for business customers? Increase both the high and low rates by a factor of two Decrease the high rate from $300 to $200 Decrease both the high and low rates by half O Decrease both the high and low rates by $20 O Increase both the high and low rates by $20
Transcribed Image Text:The interContinental Hotel at Tsim Sha Tsui has 100 total rooms available for Dec 31. There are two types of customers, business customers and leisure customers. InterContinental 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. Which of the following actions would increase the optimal protection level for business customers? Increase both the high and low rates by a factor of two Decrease the high rate from $300 to $200 Decrease both the high and low rates by half O Decrease both the high and low rates by $20 O Increase both the high and low rates by $20
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