The Platinum Star Hotel in Kingston, NY, is considering doing overbooking in order to deal with the constant problem they have with no-shows. The table given below presents the number of no-shows and the probability of each occurring. Number of Shows (d) Probability of No-shows Occurring P(d) 0 0.10 1 0.07 2 0.12 3 0.02 4 0.07 5 0.01 6 0.04 7 0.19 8 0.22 9 0.16 a) What would be your recommendation for overbooking if the average rate per room per night is S125 and the cost of not honoring a reservation is $155? b) What is the expected loss for your overbooking choice? c) State the reasoning for selecting your overbooking choice?

Suppose that you have two four-sided dice that are each equally weighted (i.e. equal chance of any of the four sides landing face up). One of them has values [12.5968, 2, -2 and -12.5968] , the other [12.5968, 4, -2 and -12.5968] Which of them has a σ of 9 using the probability model approach.   a) [12.5968, 2, -2 and -12.5968]   B) [12.5968, 4, -2 and -12.5968]

A farmer must decide whether to take protective action to limit damage to his grapefruit crop in the event that the overnight temperature falls to a level well below freezing. If the temperature drops too low he runs the risk of losing his entire crop, valued at $75,000. Based on the National Weather Service, the probability of such a temperature drop is 60%. He can insulate his crop by spraying water on all the trees, which will cost $20,000. This action might succeed in protecting the crop, with the following possible outcomes: Probability Damage 0.30 $0 0.15 $5,000 0.10 $10,000 0.15 $15,000 0.30 $20,000    Construct a decision tree to help the farmer make his decision. What should he do? Explain your answer.      Find the highest cost of insulating the grapefruits for which the farmer prefers to insulate his crop.     Suppose the farmer is uncertain about the reliability of the National Weather Service forecast. If he thinks the probability of…

Deborah Holwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd) Alternatives States of Nature (size of crowd) Large Average Small Large Inventory Ave yge Inventory Smal Inventory $12,000 -51,000 $18,000 $15.000 $16,000 $4,000 $10,000 $5,000 Probabilities associated with the states of nature are 0.35 for a large crowd, 0.50 for an average crowd, and 0.15 for a small crowd. $6.000 a) The alternative that provides Deborah the greatest oxpected monetary value (EMV) is The EMV for this decision is s (enter your answer as a whole number).