2+2=?

2) (50 points) ABA Room Reservations Problem. Suppose the American Bar Association is holding its annual convention in Las Vegas. It can reserve rooms in advance for $70 per room. The number of rooms demanded is normally distributed with a mean of 5,100 and a standard deviation of 2,300 . If there is an excess demand, extra rooms costs $175 per room plus there is a $10 inconvenience cost for the attendees. If the goal is to minimize the expected cost to the ABA and its members, how many rooms should the ABA reserve at the convention? Look at the Probabilistic Inventory handout for details. Use Appendix E Table E.3 You do not need to linearly interpolate. Just pick the closest z value