Bratt's Bed and Breakfast, in a Small Historic New England

question 87

Essay

Bratt's Bed and Breakfast, in a small historic New England town, must decide how to subdivide (remodel) the large old home that will become an inn. There are three alternatives: Option A would modernize all baths and combine rooms, leaving the inn with four suites, each suitable for two to four adults. Option B would modernize only the second floor; the results would be six suites, four for two to four adults, and two for two adults only. Option C (the status quo option) leaves all walls intact. In this case, there are eight rooms available, but only two are suitable for four adults, and four rooms will not have private baths. Below are the details of profit and demand patterns that will accompany each option. Which option has the highest expected value?

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Definitions:

Malaria

A mosquito-borne infectious disease affecting humans and animals caused by parasitic protozoans of the genus Plasmodium, characterized by fever, chills, and flu-like illness.

Organism

A living entity that can function independently, consisting of one or more cells.

Contractile Vacuole

In freshwater protists, an organelle that collects and expels excess water.

Cilia

Microscopic hair-like structures that extend from the surface of many animal cells, involved in movement and sensory processes.