Answer Happy

The Marriott Hotel in Central has 100 rooms available for Dec
31. There are two types of customers, business customers and
leisure customers. Marriot charges a high rate of $250/night and a
low rate of $120/night. High-rate guests do not need pre-booking
and has time flexibility; low-rate guests need pre-booking. Assume
business customers always take the high rate option and leisure
customers always take the low rate option. Leisure customers always
book far earlier before business customers and there are sufficient
leisure customers. The total number of business customers is
uncertain and its demand distribution is given in the following
table:
Number of business customers
Probability
56
0.06
57
0.08
58
0.19
59
0.21
60
0.2
61
0.16
62
0.07
63
0.03
Which of the following actions would increase the optimal
protection level for business customers?
Group of answer choices
Increase both the high and low rates by a factor of two
Decrease the high rate from $300 to $200
Decrease both the high and low rates by $20
Increase both the high and low rates by $20
Decrease both the high and low rates by half