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6) Carol Hotel with a capacity of 300 standard rooms is organizing a package deal for New Year's Eve. One-night stay at a room
6) Carol Hotel with a capacity of 300 standard rooms is organizing a package deal for New Year's Eve. One-night stay at a room costs $300 for each reservation. The hotel can easily get 300 reservations and fill up the hotel. However, they are afraid that some people with reservation may not show up. The number of no shows is normally distributed with mean 10 and standard deviation 4. i) (15 points) It costs the hotel $ 200 to bump a customer (There is a small hotel called Mini Carollnn Hotel closeby to handle the bumping problem). How many reservations should Carol Hotel take? ii) (10 points) Carol Hotel deal with Mini CarolInn Hotel handling the bumped customers is over. Now, Carol Hotel needs to negotiate with BusyBee Hotels and the bumping rate increases to $400. If Carol Hotel agrees with BusyBee Hotels (assuming the rest of the parameters stays the same), how many reservations should Carol Hotel take?
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