Question
Parks Canada takes 10 reservations per day for hikers beginning the West Coast Trail on the Bamfield trail head. Each hiker must pay a $5
Parks Canada takes 10 reservations per day for hikers beginning the West Coast Trail on the Bamfield trail head. Each hiker must pay a $5 non-refundable reservation fee and then an additional $20 fee when they start the hike. Past experience has shown that only 70% of hikers actually show up to claim their reservation and start the hike. The probability of any one hiker showing up is independent of any other hiker showing up. If Parks Canada takes 10 reservations for a given day:
(a) What is the expected revenue for that day?
(b) What is the probability exactly 8 hikers will show up?
(c) What is the probability Parks Canada will receive $210 or more in revenue from the hikers who made reservations?
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