Consider Exercise 8.7 again. What will be the overbooking policy for the inn if the no-shows follow a Normal distribution with a mean of 20 and a standard deviation of 5.

Data From Exercise 8.7:

A family-operated inn in State College, Pennsylvania, is considering overbooking to minimize their revenue loss due to no-shows and last-minute cancellations. The cost of an empty room is estimated at $95 per night. When the inn is fully occupied, customers with guaranteed reservations are placed in nearby expensive hotel chains, averaging $165 per night. In addition to paying the difference in room rates, the inn also gives a $20 voucher for taxi fare.

Determine the inn’s overbooking policy, given that the distribution of no-shows is Uniform over the interval (5, 25).