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Q5. The American Bar Association (ABA) is holding its annual convention in Las Vegas. Six months before the convention begins, the ABA must decide how
Q5. The American Bar Association (ABA) is holding its annual convention in Las Vegas. Six months before the convention begins, the ABA must decide how many rooms should be reserved in the convention hotel. At this time, the ABA can reserve rooms at a cost of $50/room. ABA has to pay for all rooms reserved, whether they are used or not. Six months before the convention, the ABA does not know with certainty how many people will attend the convention. If the number of rooms required exceeds the number of rooms reserved at the convention hotel. Extra rooms will have to be found at neighboring hotels at a cost of $80/room. The ABA feels there should be an additional \"inconvenience cost\" of $10 for each room obtained at a neighboring hotel. (a) The ABA believes that the number of rooms required is given below. How many rooms should the ABA reserve at the convention hotel? What is the total expected cost to the ABA? (5 + 5 = 10 marks) #ofroom required 300 400 500 700 Probabili .20 .30 .30 .15 .05 (b) The ABA believes that the number of rooms required is normally distributed with a mean of 5000 rooms and a standard deviation of 2000 rooms. The ABA wants to have a 20% chance of having to rent additional rooms at the neighboring hotel. What will be the ABA's convention hotel cost
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