Y=0.1

30 33 Question 4 (4 points) (Replace Y in the question with its value in the table of page 2.) Grand Hyatt has 200 rooms with standard queen-size beds and two rates: a full price of HK$400 for business travelers and a discount price of HK$250 for leisure travelers. 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 demand from leisure travelers could fill the whole hotel while the demand from business travelers is distributed as follows. Number of business travelers Frequency 28 0.05 0.05 0.1 35 0.1 37 Y 38 0.2-Y 40 0.15 42 0.1 44 0.1 47 0.05 0.05 53 0.05 04.1: Find the optimal protection level for full-price rooms (the number of rooms to be protected from sale at a discount price). (1 point) Q4.2: The competitor of Grand Hyatt, Kimberley Hotel, declared a fare war by slashing business travelers' prices down to HK$350. Grand Hyatt had to match that fare to keep demand at the same level. Does the optimal protection level increase, decrease, or remain the same? Explain your answer. (2 points) Q4.3: What number of rooms (on average) remain unfilled if we establish a protection level of 39 for the full-priced rooms? (1 point) 50