In using the critical fractile criterion P(du/(C_u+ C_o) for overbooking, the 'd' refers to: A) cost of overestimating demand. B) cost of underestimating demand. C) number of rooms overbooked. D) number of no-shows based on past experience.

Question

Quizplus · Accepted Answer

The critical fractile criterion P(d<x) is used to determine the number of no-shows based on past experience. It helps in overbooking by predicting how many customers are likely to not show up, which can aid hotels in efficiently filling their available rooms without turning away potential guests. Therefore, the best choice is D.

In Using the Critical Fractile Criterion P(d<x) = Cu/(Cu

In Using the Critical Fractile Criterion P(d<x) = C_u/(C_u