Question: Problem 3 ( 2 . 5 pts ) A hotel numbers its fare classes from higher to lower as 1 , 2 , 3 and

Problem 3(2.5 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=$300, p2=$250, p3=$200, p4=$150. 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 [0,10], D1,2 in [0,20], D1,2,3 in [0,30], D1,2,3,4 in [0,40].
a)(0.5 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)(0.5 pts) What is the protection level y3 for classes {1,2,3}?
c)(0.5 pts) What is the protection level y2 for classes {1,2}?
d)(0.5 pts) What is the protection level y1 for class {1}?
e)(0.5 pts) How does protection level y1 change when p3 reduces to $160?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!