A Hotel Manager Must Decide How Many Rooms to Overbook

question 68

Multiple Choice

A hotel manager must decide how many rooms to overbook.Room rates are $125 per night and each room costs $45 to maintain.A bumped customer is sent to another hotel at a cost of $75.Given the distribution of no-shows below,how many rooms should the manager overbook?

• A)Overbook 9 rooms
• B)Overbook 10 rooms
• C)Overbook 11 rooms
• D)Overbook 12 rooms

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