Six months before its annual convention, the American Medical Association (AMA) must determine how many rooms to reserve. At this time, the AMA can reserve rooms at a cost of $100 per room. The AMA believes the number of doctors attending the convention will be normally distributed with a mean of 5000 and a standard deviation of 1000. If the number of people attending the convention exceeds the number of rooms reserved, extra rooms must be reserved at a cost of $160 per room.

a. Use simulation with @RISK to determine the number of rooms that should be reserved to minimize the expected cost to the AMA.

b. Rework part a for the case where the number attending has a triangular distribution with minimum value 2000, maximum value 7000, and most likely value 5000. Does this change the substantive results from part a?