Question

The occupancy percentage of a hotel is 88% for the three summer months and 44% for the rest of the year. What is the average occupancy percentage for the whole year ? 

1. 50%
2. 55%
3. 66%
4. 70%

Answer 1

Correct Answer - Option 2 : 55%

Given:

Occupancy % for three months is 88%

Occupancy % for nine months is 44%

Formula:

Average = Total terms/Number of terms

Calculation:

First 3 months occupancy,

⇒ 3 × 88/100

Last 9 months occupancy,

⇒ 9 × 44/100

Total occupancy in a year,

⇒ 3 × 88/100 + 9 × 44/100 = 6.6

∴ Average occupancy percentage = 6.6/12 × 100 = 55%