Question: Overbooking hotel rooms ( Occupancy Management ) . The practice of overbooking hotel rooms - accepting reservations for more rooms than are available by forecasting

Overbooking hotel rooms (Occupancy Management). The practice of overbooking hotel rooms - accepting reservations for more rooms than are available by forecasting the number of no-show reservations with the goal of attaining 100% occupancy - is viewed by the general public with skepticism. Hoteliers and front office managers who practice overbooking do so to meet an organizations financial objectives, i.e. to maximize profits. Assume you are a front office manager for a hotel with 25 rooms, and you are responsible for administering and developing a policy on overbooking. In this hotel we will assume that all reservations are Guaranteed reservations where prospective guests have made a contract with the hotel for a room. Below are a few facts to help with the problem.
The hotel has a maximum capacity of 25 rooms.
The hotel makes revenue of $100 for each room that is occupied (If a customer cancels or is denied a room the hotel does not get any money from this customer).
The hotel has a policy to make exactly 26 Guaranteed reservations each day.
Any reservation that is not honored by the hotel will cost the hotel $256. The $256 is the cost to pay for a nearby hotel room and provide the customer with a complementary dinner at a nearby restaurant.
Assume that the hotel has a fixed daily operating cost of $1,800 and a variable room cleaning and maintenance cost of $20 per occupied room.
Complete the table below to help you solve this problem.
Row 1 Number who show up 23242526
Row 2 probability 0.30.40.20.1
Row 3 revenue
Row 4 variable cost
Row 5 fixed cost
Row 6 profit = revenue - variable cost - fixed cost
What is the Expected Daily Profit for this hotel. Report your answer with at least 1 decimal place.

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