Question: Problem 1 ( 2 pts ) A hotel numbers its fare classes from higher to lower as 1 , 2 , 3 and 4 .

Problem 1(2 pts) A hotel numbers its fare classes from higher to lower as 1,2,3 and 4. The room prices for these classes are p1=$320, p2=$270, p3=$220, p4=$170. The demands for these fare classes are denoted by D1, D2, D3 and D4. The hotel considers the cumulative demands D1= D1, D1,2= D1+ D2, D1,2,3= D1+ D2+ D3, D1,2,3,4= D1+ D2+ D3+ D4. These demands turn out to have uniform distributions with the following ranges: D1 in [0,20], D1,2 in [0,40], D1,2,3 in [0,60], D1,2,3,4 in [0,80]. a)(0.4 pts) Before applying EMSR-b heuristic, the hotel needs aggregate prices p1, p1,2, p1,2,3 and p1,2,3,4. Compute these prices. b)(0.4 pts) What is the protection level y3 for classes {1,2,3}? c)(0.4 pts) What is the protection level y2 for classes {1,2}? d)(0.4 pts) What is the protection level y1 for class {1}? e)(0.4 pts) How does protection level y1 change when p3 reduces to $180?

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