Suppose the Records of a Motel Show That, on the Average

question 47

Short Answer

Suppose the records of a motel show that, on the average, 10% of their prospective guests will not claim their reservation. If the motel accepts 218 reservations and there are only 200 rooms in the motel, what is the probability that all guests who arrive to claim a room will receive one?
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Definitions:

Deregulation

The removal of most or even all of the government regulation and laws designed to supervise an industry. Sometimes undertaken to combat regulatory capture.

Economists

Experts or professionals who study, develop, and apply theories and concepts in economics to analyze how societies utilize scarce resources.

Monopoly

A market condition where a single firm has exclusive control over a product or service, eliminating competition.

Negative Externalities

Adverse effects suffered by a third party or the public as a result of an economic transaction or activity.