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A builder completes a large project for a property company who due to cash flow problems offer him a small seaside hotel in lieu of payment The builder who has no desire to enter the hotel

A builder completes a large project for a property company who, due to cash flow problems, offer him a small seaside hotel in lieu of payment. The builder, who has no desire to enter the hotel business, has found a buyer for the hotel, but this deal will not be completed until 12 weeks after the hotel is due to open for the summer season. The builder has decided to operate the hotel himself for these 12 weeks. To keep this simple he has decided to accept only one-week bookings. There are 8 double rooms and 3 single rooms in the hotel. The cost of a double room for one week will be £300, and the cost of a single room for one week, £200. The numbers of rooms of each type booked per week varies according to the following distributions:

Simulate the operation of the hotel for these 12 weeks and work out the total revenue. [The answer to this question in Appendix 2 was obtained using random numbers from Table 4 on page 620 in Appendix 1, starting at the top of column 8 and going down for the double rooms and starting at the top of column 11 and going down for the single rooms.]

Jul 23 2020 View more View Less

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