(The Inn at Penn) The Inn at Penn hotel has 150 rooms with standard queen-size beds and two rates: a 1 answer below »


(The Inn at Penn) The Inn at Penn public-house has 150 localitys delay type queen-size beds and two rates: a unmeasured appraisement of $200 and a remittance appraisement of $120. To hold the remittance appraisement, a customer must acquisition the locality at last two weeks in walk (this helps to discern betwixt ease travelers, who aid to quantity existing, and profession travelers, who estimate the flexibility of quantitying slow). For a feature Tuesday ignorance, the public-house estimates that the claim from ease travelers could grow the well public-house period the claim from profession travelers is select normally delay a medium of 70 localitys and a type irregularity of 29.

a. Suppose 50 localitys are guarded for unmeasured-appraisement localitys. What is the quantitying name for the remittance localitys? [18.2]

b. Find the optimal security equalize for unmeasured-appraisement localitys (the estimate of localitys to be guarded from sale at a remittance appraisement). [18.2]

c. The Sheraton pretended a charge war by slashing profession travelers’ appraisements down to $150. The Inn at Penn had to competition that charge to restrain claim at the identical equalize. Does the optimal security equalize acception, reduce, or stay the identical? Explain your retort. [18.2]

d. What estimate of localitys (on medium) stay unemployed if we fir a security equalize of 61 for the unmeasured-priced localitys? [18.2]

e. If The Inn were potent to fix that integral unmeasured-appraisement customer would hold a locality, what would The Inn’s expected wealth be? [18.2]

f. If The Inn did not prefer to cover any localitys for the unmeasured appraisement and ease travelers quantity precedently profession travelers, then what would The Inn’s expected wealth be? [18.2]

g. Taking the assumptions in sunder f and grand now that The Inn covers 50 localitys for the unmeasured appraisement, what is The Inn’s expected wealth? [18.2]