Question $9$Question $10$

A Disney hotel, with a capacity of $300$ rooms, numbers its fare classes from higher to lower as

$1,2,$ and $3.$ The room prices for these classes are $p_1=$$$1000,p_2=$$$750,p_3=$$$500.$ The

demands for these fare classes turn out to have normal distributions with a mean of $50$ and a

standard deviation of $10.$ The hotel uses the EMSR$-$a heuristic to compute the protection

levels and booking limits$.$

$($a$)$ What is the protection level $y_2$ for classes $\{1,2\}?$

$($b$)$ What is the protection level $y_3$ for classes $\{1,2,3\}$

$($c$)$ What is the booking limit $b_3$ for class $3?$

A car rental company only offers executive and standard cars. An executive car is priced at

$$130$ while a standard car is priced at $$65.$ Suppose that the executive $($full$-$fare$)$ class

demand is uniform between $20$ and $60$ cars.

$($a$)$ What is the booking limit for standard $($discount fare$)$ customers if the rental company has

$100$ cars?

$($b$)$ What is the booking limit for standard $($discount fare$)$ customers if the rental company has

$30$ cars?