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The hotel Bernoulli has 200 beds to accommodate its guests. However, research showed that each guest may cancel their reservation with probability 0.2. Thus the
The hotel "Bernoulli" has 200 beds to accommodate its guests. However, research showed that each guest may cancel their reservation with probability 0.2. Thus the hotel considers overbooking and aims to accept more reservations than the number of beds it actually has.
How many reservations can the hotel manager accept without risking overbooking for more than 25 out of each 1000 reservations? Use the Central Limit Theorem to approximate the relevant probabilities.
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