Create the model spreadsheet

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Reference no: EM132112547

The Gambler Hotel in Las Vegas has 300 rooms that each rents for $175 per night. For each reservation accepted, there is a 10% chance that the guest will not arrive. If the guest doesn’t arrive, the hotel will charge $30 for reservation processing fee. If the hotel overbooks, the guests will be upgraded to a luxury suit at their new Grand Tower at no additional charge. This incurs additional $220 cost for Gambler hotel for each reservation that is not honored. The hotel’s fixed cost per night obeys a Normal distribution with the mean of $20,000 and standard deviation of $2,000. The variable cost (per occupied room) is uniformly distributed between $30 to $70.

a. The manger believes that accepting 310 nightly reservations is a policy that the hotel should implement. Use Crystal Ball to estimate the average daily profit using the manager’s policy (1000 replications).

i. Create the model spreadsheet.

ii. Create a report for the results and label the tab.

Reference no: EM132112547

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