Okay, so I have to do a presentation on Probability distribution in regards to my major (Hotel Management). Just want to make sure that my data makes sense and goes along with probability distribution.
So here we go..:
The Ritz-Carlton in Avon, CO hires G.A. Consulting for their professional opinions and knowledge in the hospitality industry. Being a "seasonal" resort, the General Manager is contemplating whether or not he should shut the when it's not the Winter season due to less revenue. The GM also has information in regards to the hotel's occupancy rate and rates during the non-Winter months available.
Season | Total Revenue (X) | Months in Year ( P(X) ) | X*P(X)
Peak $10,400,350 .33 $3,432,115.50
Non-Peak $3,889,390 .77 $2,994,830.30
Expected Value = $3,432,115.50-$2,994,830.30 = $437,285.20
Is it worth shutting down the resort during non-peak months? No, because you make a difference of $437,285.20 during non-peak months.
Does this make sense and would it work? If not, what kind of situation would work for this....