Asked by diksha pathria on Jul 16, 2024
Verified
If the price young couples are willing to pay increases by 50%,how many rooms should be reserved for corporate clients?
A) 17
B) 7
C) 4
D) 10
Young Couples
Pairs of individuals in a romantic relationship who are typically in the early stage of their partnership, often focusing on life planning and setting foundations for their future.
Corporate Clients
Businesses or organizations that receive services or goods from another business, often under a contract or agreement.
Demand Pattern
The trend or sequence of customer demand for a product or service over a specific period of time, often analyzed for forecasting and inventory management.
- Achieve proficiency in applying revenue management within scenario-driven situations.
Verified Answer
Next, we need to determine the point at which the revenue from the young couples equals the revenue from the corporate clients.
To do this, we can use the formula for normal distribution: z = (x - μ) / σ, where z is the z-score, x is the value we are interested in (in this case, the number of rooms reserved for corporate clients), μ is the mean, and σ is the standard deviation.
We want to find the z-score where the area to the right of it is 0.5 (since we want to find the point where the revenue from the young couples equals the revenue from the corporate clients). Using a standard normal distribution table, we find that the z-score is 0.
So, we can set up the equation:
250(20-x) = 225x
Solving for x, we get x = 7.
Therefore, we should reserve 7 rooms for corporate clients.
Learning Objectives
- Achieve proficiency in applying revenue management within scenario-driven situations.
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