Maximize the average daily profit

Assignment Help Operation Management

Reference no: EM132110021

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? Use Microsoft Excel with ASPE (or R statistical programming) to solve.

Reference no: EM132110021

Questions Cloud

Define what is the capacitance of the capacitor : The potential difference between the plates of a parallel plate capacitor is 35V and the electric field between the plates has a strength of 750V/m.

The process of designing and developing mini online course : Design a weekly schedule for Weeks 4-6 of instruction that includes: (a) Topic(s) and (b) learning outcomes that are aligned with the topics

Calculate the depreciation cost for this machine this year : The accumulate depreciation is 9500 hours. Calculate the depreciation cost for this machine this year based on a usage of 1800 hours.

What is the charge in coulumbs of the point charge : Suppose a point charge produces a potential of -1.8 V at a distance of 1.1 mm. What is the charge, in coulumbs, of the point charge?

Maximize the average daily profit : How many reservations should the hotel accept if it wants to maximize the average daily profit?

Determine the effectiveness of the brand newly-launched : RESEARCH REPORT BRIEF ASSIGNMENT, CURTIN UNIVERSITY, AUSTRALIA. Determine the effectiveness of the brand's newly-launched

What are the pros and cons of the three options : What are the pros and cons of the three options identified by Dominique? What other options you would consider?

Write an expression for the time : Write an [expression] for the time at which the magnitudes is the radial and tangential accelerations at the edge will be equal.

What is the potential difference across the resistor : What is the potential difference across the 10 O resistor in the figure? What is the potential difference across the 20 O resistor in the figure?

User Account

All Pages