The Hyatt hotel at Hong Kong is implementing the newsvendor model to determine the booking limit for the low-fair customers and protection level (Q) for the high-fair customers. The total number of rooms in the hotel is $150. Low-fair customers are more price sensitive and tend to reserve rooms well in advance of their stay at a discount reservation fee of $159 per day, which is not refundable if the lowfare customers are no-show. High-fair customers are generally willing to pay $225 for a room because they tend to book much closer to the time of their trip. Two types of uncertainties are involved in the problem: The demand of high-fair customers (Dhigh) is uncertain and it follows the following distribution: 6 ISOM2700: Homework Assignment #3 Furthermore, as the low-fair customer books in advance, they are more likely to cancel their reservations upon the stay. To manage the customer no-show, the hotel uses the over-booking strategy (q). If the number of no-shows is less than the number of over-booked rooms, each customer denied a room need to be accommodated at some other hotel together with certain compensation. The total cost to Hyatt for each of those denied customers is estimated to be about $509. The number of no-show customers ( Dnoshow) follows the following distribution: What is the booking limit for low-fare customers? (Tips: consider both protection level for high fair customer, and no-show for low-fair customer.)