(5 pts) Hertz operates a car rental office at a major international airport, with a fleet of 190 compact cars. The regular rental rate is $65 per day. Discount rate of $27.50 per day is available to persons who make reservation at least 14 days in advance. The daily full-fare demand is normally distributed with mean 60 and standard deviation 15, and the discount fare demand is normally distributed with mean 200 and standard deviation 15. What is the optimal booking limit? (3 points) If the full-fare demand becomes less uncertain, i.e., its standard deviation decreases, while everything else remains the same, how would the optimal booking limit (the number of cars made available to discount customers) change? Explain (2 points) As the price difference between high and low ticket prices increases, what happens to the protection level (number of seats reserved for high-price tickets?) (5 pts) Hertz operates a car rental office at a major international airport, with a fleet of 190 compact cars. The regular rental rate is $65 per day. Discount rate of $27.50 per day is available to persons who make reservation at least 14 days in advance. The daily full-fare demand is normally distributed with mean 60 and standard deviation 15, and the discount fare demand is normally distributed with mean 200 and standard deviation 15. What is the optimal booking limit? (3 points) If the full-fare demand becomes less uncertain, i.e., its standard deviation decreases, while everything else remains the same, how would the optimal booking limit (the number of cars made available to discount customers) change? Explain (2 points) As the price difference between high and low ticket prices increases, what happens to the protection level (number of seats reserved for high-price tickets?)