(Allocating Parking Spots) You are the manager of a luxury apartment building whose parking garage contains...

 

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(Allocating Parking Spots) You are the manager of a luxury apartment building whose parking garage contains 300 parking spots. Residents may choose to purchase a dedicated parking spot for $60,000 for 3 years. (Only 3-year contracts are available.) The garage also has metered parking spots that require drivers to pay $4 per hour for parking. The number of drivers wishing to park in metered spots in a given hour has a normal distribution with a mean of 50 and a standard deviation of 10. Your goal is to choose how to allocate the 300 spots between dedicated and metered spots. To keep things simple, assume that (1) the demand for dedicated spots is greater than 300; (2) drivers who park in metered spots all park for exactly 1 hour, arriving and departing on the hour (at 12:00, 1:00, etc.); and (3) drivers who purchase dedicated spots never park in metered spots, and vice-versa. What is the optimal number of spots to designate as metered spots? (Allocating Parking Spots) You are the manager of a luxury apartment building whose parking garage contains 300 parking spots. Residents may choose to purchase a dedicated parking spot for $60,000 for 3 years. (Only 3-year contracts are available.) The garage also has metered parking spots that require drivers to pay $4 per hour for parking. The number of drivers wishing to park in metered spots in a given hour has a normal distribution with a mean of 50 and a standard deviation of 10. Your goal is to choose how to allocate the 300 spots between dedicated and metered spots. To keep things simple, assume that (1) the demand for dedicated spots is greater than 300; (2) drivers who park in metered spots all park for exactly 1 hour, arriving and departing on the hour (at 12:00, 1:00, etc.); and (3) drivers who purchase dedicated spots never park in metered spots, and vice-versa. What is the optimal number of spots to designate as metered spots?

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Answer All things and value are assume Alloting Parking Spot as a manager play an very important role in Bussinessbecause in apartment different types ... View the full answer