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( Sarah s Wedding ) Sarah is planning her wedding. She and her fiance have signed a contract with a caterer that calls for them
Sarahs Wedding Sarah is planning her wedding. She and her fiance have signed a contract with a caterer that calls for them to tell the caterer the number of guests that will attend the reception a week before the actual event. This final number will determine how much they have to pay the caterer; they must pay $ per guest that they commit to If for example, they tell the caterer that they expect guests, they must pay $times $ even if only, say, guests show up The contract calls for a higher rate of $ per extra guest for the number of guests beyond what the couple commits to Thus, if Sarah and her fiance commit to guests but show up they must pay $the original $ plus times $ The problem Sarah faces is that she still does not know the exact number of guests to expect. Despite asking that friends and family members reply to their invitations a month ago, some uncertainty remains: Her brother mayor may notbring his new girlfriend; her fiances college roommate mayor may notbe able to take a vacation from work; and so forth. Sarah has determined that the expected number of Chapter guests ie the mean number is but the actual number could be anywhere from to : a How many guests should Sarah commit to with the caterer? b Suppose Sarah commits to guests. What is Sarahs expected bill? c Suppose that the caterer is willing to alter the contract so that if fewer than the number of guests they commit to show up they will get a partial refund. In particular, they only have to pay $ for each noshow. For example, if they commit to but only show, they will have to pay times $times $ $ Now how many guests should she commit to d The caterer offers Sarah another option. She could pay $ per guest, no matter how many guests show up; that is she wouldnt have to commit to any number before the wedding. Should Sarah prefer this option or the original option $ per committed guest and $ each guest beyond the commitment
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