Conduct Monte Carlo Simulation Using Historical Data and Resampling Techniques

question 20

Multiple Choice

Conduct Monte Carlo simulation using historical data and resampling techniques. Use the information below to answer the following question(s) .
Below is a spreadsheet for a hotel overbooking model. $\begin{array}{|c|c|c|c|l|l|}\hline & \text { A } & \text { B } & \text { C } &{\text { D }} & \text { E } \\\hline 1 & \text { Hotel Overbooking Model } & & & \text { Demand } & \text { Probability } \\\hline 2 & & & & 290 & 0.03 \\\hline 3 & \text { Data } & & & 295 & 0.05 \\\hline 4 & & && 300 & 0.08 \\\hline 5 & \text { Rooms av ailable } & 350 && 305 & 0.12 \\\hline 6 & \text { Price } & \$ 120 & & 310 & 0.15 \\\hline 7 & \text { Overbooking cost } & \$ 100 && 315 & 0.20 \\\hline 8 && & & 320 & 0.15 \\\hline 9 & \text { Model } & & & 325 & 0.10 \\\hline 10 & & & & 330 & 0.05 \\\hline 11 & \text { Reserv ation limit } & 350 && 335 & 0.04 \\\hline 12 & \text { Customer demand } & 320 && 340 & 0.02 \\\hline 13 & \text { Reservations made } & & &345 & 0.01 \\\hline 14 & \text { Cancellations } & 15 \\\hline 15 & \text { Customer arrivals } & \\\hline 16 & & \\\hline 17 & \text { Overbooked customers } & \\\hline 18 & \text { Net revenue } & \\\hline\end{array}$ Assume that each reservation has a constant probability p = 0.04 of being cancelled. Answer the question(s) using the Risk Solver Platform.
-With respect to B14, what should the number of trials correspond to in the Parameters section of the Binomial dialog?

• A) reservation limit
• B) customer demand
• C) reservations made
• D) customer arrivals

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Definitions:

Sliding Doors

A type of door which opens horizontally by sliding, typically along a track, widely used for their space-saving and functional properties in various architectural contexts.

Yoga

A group of physical, mental, and spiritual practices or disciplines which originated in ancient India, aimed at controlling the mind, body, and soul.

Katsushika Hokusai

A renowned Japanese artist and printmaker of the Edo period, best known for his series of woodblock prints, "Thirty-Six Views of Mount Fuji," including "The Great Wave off Kanagawa."

Great Wave Off Kanagawa

A famous woodblock print by Japanese artist Hokusai, iconic for its dramatic depiction of a massive wave and Mount Fuji in the background.