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A Hotel Manager Must Decide How Many Rooms to Overbook

Question 68

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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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