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Single order quantity inventory problem or Newsboy Problem: A hotel near the university always fills up on the evening before football games. History has shown

Single order quantity inventory problem or Newsboy Problem:
A hotel near the university always fills up on the evening before football games. History has shown that when the hotel is fully booked, the number of last-minute cancellations has a mean of 5 and standard deviation of 3. The average room rate is $80. When the hotel is overbooked, the policy is to find a room in a nearby hotel and to pay for the room for the customer. This usually costs the hotel approximately $200 since rooms booked on such late notice are expensive. How many rooms should the hotel overbook ?

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