PROBLEM 3: The following table shows the length of stay distribution for guests staying at a beach resort, in days. TOTAL 20 MARKS

Days 2 3 4 5 6 7 8 9 10

Probability% 5 10 12 12 11 15 14 12 9

The resort management makes a net profit of $250 per day per guest during the first 2 days of the stay, and $150 per day per guest after the first 2 days. How much profit will the resort owners make in a month (assuming 30 days in a month) if there are 100 guests arriving per day? (20 MARKS) [Hints: Note that a guest who only stays for two days is billed $500; find the average profit for one guest then work out for the entire month.