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Hotel capacity is limited in Noshuille so even a 2-star hotel can sell its standard room at the high price of $300. The hotel

Hotel capacity is limited in Noshuille so even a 2-star hotel can sell its standard room at the high price of  

Hotel capacity is limited in Noshuille so even a 2-star hotel can sell its standard room at the high price of $300. The hotel has 120 rooms and the distribution of the number of x of no shows is. a 3 Prob (x=a) 0.1 4 0.2 5 0.3 6 0.2 7 0.1 8 0.1 a) Suppose the cost of deniol of service per customer is D = 1000? Find the optimal overbooking limit b. b) The hotel aims to book at most 126 rooms. For this policy to be optimal, what should the cost of service per customer be? c) When there is a conference is Nashville, the hotel decreases its overbooking limit to 125. Find the corresponding denial of service cost.

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