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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
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Reconsider Example 11.1 (Surfside Hotel), because rising costs now have resulted in a $100 opportunity loss from a no-show. Assume that the no-show experience has not significantly changed and that the resulting loss when a guest is overbooked still is $100. Should Surfside revise its no-show policy?
Example 11.1
Surfside Hotel
During the past tourist season, Surfside Hotel did not achieve very high occupancy despite a reservation system that was designed to keep the hotel fully booked. Apparently, prospective guests were making reservations that, for one reason or another, they failed to honor. A review of front-desk records during the current peak period, when the hotel was fully booked, revealed the record of no-shows given in Table 11.6.

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