Conduct Monte Carlo Simulation Using Historical Data and Resampling Techniques

question 46

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 B12, what is the range of weights given in the Parameters section in the Discrete dialog?

• A) $E$2:$E$13
• B) $D$2:$D$8
• C) $D$2:$D$13
• D) $E$2:$E$8

Analyze the relationship between output and costs using average and marginal measures.

Identify the effects of labor and capital inputs on production costs.

Assess how changes in production levels affect total, average, and marginal costs.

Distinguish between diminishing and increasing marginal product.

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Definitions:

Self-Control

Self-discipline involves managing one's feelings, thoughts, and actions despite the presence of temptations and urges.

Alcohol Consumption

The intake of beverages containing ethanol, which can affect the body and mind in various ways, depending on the amount and frequency of consumption.

Daily Exercise

Engaging in physical activities every day to improve or maintain fitness and overall health.

Personal Control

An individual's belief in their capacity to influence and control events in their own life, impacting motivation and psychological well-being.