1. Inn at Penn has 200 rooms. For regular-fare customers, rooms are priced at $300 per night while the rooms are priced at $700 per night for the high-paying customers who generally arrive at the last minute. The demand for such high fare customers is distributed normally with mean 80and standard deviation 50. Assume that there is ample demand for regular-fare customers.

What should the protection level for the high fare be to maximize expected profit? 2. Inn at Penn has 200 rooms. For regular-fare customers, rooms are priced at $300 per night, while the rooms are priced at $700 per night for the high-paying customers who generally arrive at the last minute. The demand for such high-fare customers is distributed normally with mean 75 and standard deviation 60. Assume that there is ample demand for regular-fare customers.

Suppose that Inn at Penn operates with the protection level of 85 rooms for high-fare customers. On average, how many high-fare customers are turned away because of a lack of rooms? 3. Inn at Penn has 200 rooms. For regular-fare customers, rooms are priced at $300 per night, while the rooms are priced at $700 per night for the high-paying customers who generally arrive at the last minute. The demand for such high-fare customers is distributed normally with mean 70 and standard deviation 50. Assume that there is ample demand for regular-fare customers.

Suppose that Inn at Penn operates with the protection level of 80 rooms for high-fare customers. On average, how many high-fare customers are turned away because of a lack of rooms?

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1 To maximize expected profit the protection level for highfare customers should be set such that th... View the full answer