Question: Problem 2 . A hotel has 1 5 0 rooms with standard Queen - size beds and two rates: a full price of $ 2

Problem 2. A hotel has 150 rooms with standard Queen-size beds and two rates: a full price of $250 and
a discount price of $120. To receive the discount price, a customer must purchase the room at least two
weeks in advance (this helps to distinguish between leisure travelers, who tend to book early, and business
travelers who value the flexibility of booking late). For a particular Tuesday night, the hotel estimates that
the average demand by business travelers has a mean of 70 rooms and a standard deviation of 29 rooms.
Assume that this demand follows a normal distribution. Find the optimal protection level for full price
rooms (the number of rooms to be protected from sale at a discount price) and the booking limit for discount
rooms, respectively.
 Problem 2. A hotel has 150 rooms with standard Queen-size beds

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