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A Hotel Manager Must Decide How Many Rooms to Overbook

Question 21

Multiple Choice

A hotel manager must decide how many rooms to overbook.Room rates are $125 per night and each room costs $45 to maintain.A bumped customer is sent to another hotel at a cost of $75.Given the distribution of no-shows below,how many rooms should the manager overbook? A hotel manager must decide how many rooms to overbook.Room rates are $125 per night and each room costs $45 to maintain.A bumped customer is sent to another hotel at a cost of $75.Given the distribution of no-shows below,how many rooms should the manager overbook?   A) Overbook 9 rooms. B) Overbook 10 rooms. C) Overbook 11 rooms. D) Overbook 12 rooms.


A) Overbook 9 rooms.
B) Overbook 10 rooms.
C) Overbook 11 rooms.
D) Overbook 12 rooms.

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