You oversee the annual banquet for the Football Boosters Club at your college. One week before...
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You oversee the annual banquet for the Football Boosters Club at your college. One week before the banquet you must make a commitment for the number of dinner guests. The price for each plate of dinner is $7. If fewer people show up than the committed number, you are still required to pay for the full number. If more people attend than your committed number, they will be served at a cost of $12 each. For example, if you commit for 200 people and 200 or fewer show up. you still must pay $1,400. If more than 200 attend, you pay $1,400 for the first 200 guests and $12 for each extra guest. Your judgment about the number attending can be described by a normal probability distribution with a mean of 400 guests and standard deviation of 100. Suppose the cost of the banquet is being borne entirely by the Alumni Association, and your objective is to minimize the cost, given that all who attend will be served. How big a prior commitment for dinners should you make to the hotel (i.e., what is the order quantity)? Suppose you will be paid an attendance fee of $10 per guest. Your objective is to maximize the profit from the banquet. In this case, how large of a prior commitment should you make to the hotel (i.e., what is the order quantity)? (Ctrl) You oversee the annual banquet for the Football Boosters Club at your college. One week before the banquet you must make a commitment for the number of dinner guests. The price for each plate of dinner is $7. If fewer people show up than the committed number, you are still required to pay for the full number. If more people attend than your committed number, they will be served at a cost of $12 each. For example, if you commit for 200 people and 200 or fewer show up. you still must pay $1,400. If more than 200 attend, you pay $1,400 for the first 200 guests and $12 for each extra guest. Your judgment about the number attending can be described by a normal probability distribution with a mean of 400 guests and standard deviation of 100. Suppose the cost of the banquet is being borne entirely by the Alumni Association, and your objective is to minimize the cost, given that all who attend will be served. How big a prior commitment for dinners should you make to the hotel (i.e., what is the order quantity)? Suppose you will be paid an attendance fee of $10 per guest. Your objective is to maximize the profit from the banquet. In this case, how large of a prior commitment should you make to the hotel (i.e., what is the order quantity)? (Ctrl)
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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