The manager of the extended-stay hotel in Problem 46 of Chapter 11 believes that the number...

   

Transcribed Image Text:

The manager of the extended-stay hotel in Problem 46 of Chapter 11 believes that the number of rooms rented during any given week has a triangular dis- tribution with minimum 32, most likely 38, and maximum 50. The weekly price is $950, and weekly operating costs follow a normal distribution with mean $20,000 and a standard deviation of $2,500 but with a minimum value of $15,000. (Hint: You can- not embed RAND within the NORM.INV function in order to truncate the value using an IF statement. Use the same idea as generating a triangular random variate.) Run a simulation using 200 trials to answer the following questions. a. What is the probability that weekly profit will exceed $20,000? b. What is the probability that weekly profit will be Exten ded Stay Hotel -415,000.00 Wely Pice Operting Costa Number ef Roama S0 00 $16.000 00 Tetal Revenue $0.00 $15.000 00 Profit 17 Number af Rooms 32 50 10 11 O24346735 12 0.33 13 14 Triangular random varlate 15 16 Operating Costa 17 Random number Nomal random varlate 18 19 20 21 22 23 24 Minimum 25 Malmum Average Standard Deviation Bins Cum. Frequeney Frequancy S7.500 $10.000 $12.500 S15,000 $17.500 $20.000 $22,500 $25,000 S27,500 $30.000 $32500 $35.000 The manager of the extended-stay hotel in Problem 46 of Chapter 11 believes that the number of rooms rented during any given week has a triangular dis- tribution with minimum 32, most likely 38, and maximum 50. The weekly price is $950, and weekly operating costs follow a normal distribution with mean $20,000 and a standard deviation of $2,500 but with a minimum value of $15,000. (Hint: You can- not embed RAND within the NORM.INV function in order to truncate the value using an IF statement. Use the same idea as generating a triangular random variate.) Run a simulation using 200 trials to answer the following questions. a. What is the probability that weekly profit will exceed $20,000? b. What is the probability that weekly profit will be Exten ded Stay Hotel -415,000.00 Wely Pice Operting Costa Number ef Roama S0 00 $16.000 00 Tetal Revenue $0.00 $15.000 00 Profit 17 Number af Rooms 32 50 10 11 O24346735 12 0.33 13 14 Triangular random varlate 15 16 Operating Costa 17 Random number Nomal random varlate 18 19 20 21 22 23 24 Minimum 25 Malmum Average Standard Deviation Bins Cum. Frequeney Frequancy S7.500 $10.000 $12.500 S15,000 $17.500 $20.000 $22,500 $25,000 S27,500 $30.000 $32500 $35.000

Answer rating: 100% (QA)

Answes GRven that The extended slay hotel given week has a toiangulas distaibutioo c th rinimu... View the full answer