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Given the following information, determine the optimal overbooking policy for Lindi's Beauty Salon. The salon's capacity is 8 patrons. The historic number of no-shows for
"Given the following information, determine the optimal overbooking policy for Lindi's Beauty Salon. The salon's capacity is 8 patrons. The historic number of no-shows for a typical day along with the probability of occurrence is shown in the table. The average profitability per patron is $100 and the cost of lost goodwill per patron due to overbooking is approximately $50" The expected probability for 0 no shows is .5, for 1 is .3 and for 2 is .2.
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