Question

A hotel near the university always fills up on the evening before football games. History has shown that when the

hotel is fully booked, the number of last-minute cancellations has a mean of 7 and a standard deviation of 4. The average room rate is $200. When the hotel is fully booked, the policy is to find a room in a nearby hotel and to pay for the room for the customer. This usually costs the hotel approximately $300 since rooms booked on such late notices are expensive. How many rooms should the hotel overbook?

8

6

7

5

4

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