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Unik hotel has the available capacity of 500 deluxe rooms, and the margin for each room is $100. The Christmas season is coming and the hotel opens booking from customers and must decide on how many orders to commit to at this time. If the hotel has orders that exceed capacity, it must arrange to upgrade the room for guests, which results in a loss of $50 per room. 2. What is the overbooking level should the hotel accept if cancellations are normally distributed, with a mean of 20 per cent of the orders accepted and a coefficient of variation of 0.5? OA) 142 OB) 158 OC) 161 D) 173

Unik hotel has the available capacity of 500 deluxe rooms, and the margin for each room is $100. The Christmas season is coming and the hotel opens booking from customers and must decide on how many orders to commit to at this time. If the hotel has orders that exceed capacity, it must arrange to upgrade the room for guests, which results in a loss of $50 per room. 2. What is the overbooking level should the hotel accept if cancellations are normally distributed, with a mean of 20 per cent of the orders accepted and a coefficient of variation of 0.5? OA) 142 OB) 158 OC) 161 D) 173

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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11. Unik hotel has the available capacity of 500 deluxe rooms, and the margin for each room is $100. The Christmas season is coming and the hotel opens booking from customers and must decide on how many orders to commit to at this time. If the hotel has orders that exceed capacity, it must arrange to upgrade the room for guests, which results in a loss of $50 per room. 2. What is the overbooking level should the hotel accept if cancellations are normally distributed, with a mean of 20 per cent of the orders accepted and a coefficient of variation of 0.5? OA) 142 B) 158 O C) 161 OD) 173
Transcribed Image Text:11. Unik hotel has the available capacity of 500 deluxe rooms, and the margin for each room is $100. The Christmas season is coming and the hotel opens booking from customers and must decide on how many orders to commit to at this time. If the hotel has orders that exceed capacity, it must arrange to upgrade the room for guests, which results in a loss of $50 per room. 2. What is the overbooking level should the hotel accept if cancellations are normally distributed, with a mean of 20 per cent of the orders accepted and a coefficient of variation of 0.5? OA) 142 B) 158 O C) 161 OD) 173
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