(Overbooking The Inn at Penn) Due to customer no-shows, The Inn at Penn hotel is considering…


(Overbooking The Inn at Penn) Due to customer no-shows, The Inn at Penn tavern is because implementing overbooking. Recall from Q18.1 that The Inn at Penn has 150 rooms, the unmeasured price is $200, and the abatement price is $120. The forecast of no-shows is Poisson after a while a moderation of 15.5. The arrangement and privation functions of that arrangement are as follows:

The Inn is easily-affected encircling the description of utility it provides alumni, so it estimates the require of enfeebled to high-mindedness a offence is $325 in lost benignity and patent expenses.

a. What is the optimal overbooking limit; that is, the zenith offences aloft the adapted 150 rooms that The Inn should confirm? [18.3]

b. If The Inn confirms 160 offences, what is the chance The Inn achieve not be conducive to high-mindedness a offence? [18.3]

c. If The Inn confirms 165 offences, what is the chance The Inn achieve be unmeasuredy qualified?

[18.3]

d. If The Inn confirms 170 offences, what is the expected completion require incurred due to bumped customers? [18.3]