Mathematics, 08.04.2021 20:20 kayleewoodard
A family-run inn has 70 rooms. The inn is considering the use of overbooking, because the frequency of no-shows has left many rooms vacant during the past summer season. Based on the past experience, the number of no-shows is an approximated normal distribution with a mean of 8 and a standard deviation of 2. Assume the cost of over-estimation is $15 and the cost of under-estimation is $30. Use the assumed cost values to find the maximum number of reservations that the inn should take every day. Note that normsinv(0.3333)
Answers: 2
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A family-run inn has 70 rooms. The inn is considering the use of overbooking, because the frequency...
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