Hotel Overbooking - Binomial Distribution
Not what you're looking for?
Suppose that a popular hotel for vacationers in Orlando, Florida, has a total of 300 identical rooms. Like many major airline companies, this hotel has adopted an overbooking policy in an effort to maximize the usage of its available lodging capacity. Assume that each potential hotel customer holding a room reservation, independently of other customers, cancels the reservation or simply does not show up at the on a given night with probability 0.15.
(a) Find the largest number of room reservations that this hotel can book and still be at least 95% sure that everyone who shows up at the hotel will have a room on a given night.
(b) Using 322 reservations, find the probability that at least 90% of the available rooms will be occupied on a given night. [322 rooms x .90 = 289.80]
(c) Using 322 reservations, find the probability that at least 85% of the available rooms will be occupied on a given night. [322 rooms x .85 = 273.70]
Purchase this Solution
Solution Summary
Probability is calculated using Binomial distribution.
Solution Preview
Please see attached file
Suppose that a popular hotel for vacationers in Orlando, Florida, has a total of 300 identical rooms. Like many major airline companies, this hotel has adopted an overbooking policy in an effort to maximize the usage of its available lodging capacity. Assume that each potential hotel customer holding a room reservation, independently of other customers, cancels the reservation or simply does not show up at the on a given night with probability 0.15.
(a) Find the largest number of room reservations that this hotel can book and still be at least 95% sure that everyone who shows up at the ...
Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.