Problem 2: [11 points] Shangri-la Hotel has 100 deluxe rooms and has compiled the following data of cancellations at the last minute (including no shows). The hotel charges $150 per day. Because of their overbooking policy, whenever Shangri-la Hotel faces a shortage of rooms it accommodates the customers in another hotel in the neighborhood and provides complimentary breakfast, which on average costs Shangri-la $260. Use the empirical distribution below to determine: Should Shangri-la Hotel overbook? If yes, by how many rooms? Number of no shows and # Days last minute cancellations Cumulative Probability/Percentile 0 2 0.022 1 2 0.043 2 3 0.075 3 1 0.086 4 4 0.129 5 4 0.172 6 5 0.226 7 6 0.290 8 9 0.387 9 9 0.484 10 13 0.624 11 11 0.742 12 9 0.839 13 4 0.882 14 15 16 17 18 53201 0.935 0.968 0.989 0.989 1.000 3