The data in the table, from a survey of resort hotels withcomparable rates on Hilton Head Island, show that room occupancyduring the off-season (November through February) is related to theprice charged for a basic room.
| Price per Day $ | Occupancy Rate % |
| 104 | 53 |
| 134 | 47 |
| 143 | 46 |
| 149 | 45 |
| 164 | 40 |
| 194 | 32 |
- First make a linear equation using linear regression on yourcalculator where x = price and y = occupancy rate.
- Convert occupancy rate to quantity of rooms in a 200-roomhotel.
- Write down a revenue function for a 200-room hotel.
- What price per day will maximize the daily off-season revenuefor a typical 200-room hotel? Use Calculus to determine themaximum.
- If this 200-room hotel has daily operating costs of $5510 plus$30 per occupied room. What price will maximize the daily profitduring the off-season? Again use calculus to determine themaximum
More detailed instructions are given on page 690 of the textbook(12th edition).
