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A Hotel Manager Must Decide How Many Rooms to Overbook

Question 13

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


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

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