Conduct Monte Carlo Simulation Using Historical Data and Resampling Techniques

question 37

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.
-Which of the following cells is defined as an output cell?

• A) B13
• B) B14
• C) B15
• D) B17

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Definitions:

Source Amnesia

A memory disorder in which someone can remember certain information but is unable to recall where, when, or how that information was acquired.

Proactive Interference

The phenomenon where old memories inhibit the capacity to remember new information.

Retrieval Cues

Stimuli or prompts that aid the recall of information stored in memory.

Serial Position Effects

A memory-related phenomenon where people tend to recall the first and last items in a series better than the middle items.