What is the expected rent revenue and expected loss sales

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You are the officer of student Wellness in A-Group and you take care of accommodation for ABC university freshmen. You will contact homeowner within the area to prepare for new students. Knowing that the homeowner can let stranger rent with $400/month and SVU students rent with $350/month. There are 100 ready rooms in any given time. Assume that all owners think the same, ABC Uni students are always ready to rent, demand from strangers are unexpected and about 20 with standard deviation of 8. How many rooms will be reserved for stranger renter. What is the Expected Rent Revenue and Expected Loss Sales?

Reference no: EM131125061

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