Based on this distribution, what is the coefficient of variation for the room rates at this hotel location?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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The revenue manager of a hotel chain wants to analyze the distribution of room rates for a
particular hotel location. Based on historical data, she estimates the following probability
distribution for the daily room rates:
Probability
30%
40%
20%
5%
5%
Room Rate
$100
$150
$200
$250
$300
Based on this distribution, what is the coefficient of variation for the room rates at this hotel
location?
Transcribed Image Text:The revenue manager of a hotel chain wants to analyze the distribution of room rates for a particular hotel location. Based on historical data, she estimates the following probability distribution for the daily room rates: Probability 30% 40% 20% 5% 5% Room Rate $100 $150 $200 $250 $300 Based on this distribution, what is the coefficient of variation for the room rates at this hotel location?
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