Hotels, Like Airlines, Often Overbook, Counting on the Fact That

question 13

Short Answer

Hotels, like airlines, often overbook, counting on the fact that some people with reservations will cancel at the last minute. A certain hotel chain finds 20% of the reservations will not be used.
If we randomly selected 15 reservations, what is the probability more than 8 but less than 12 reservations will be used?
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If four reservations are made, what is the chance fewer than two will cancel?
______________

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Definitions:

Ethical Theory

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior.

Intuitions

Immediate understanding or knowledge of something without the need for conscious reasoning.

Nussbaum

Likely refers to Martha Nussbaum, an American philosopher and academic known for her work on ethics, human rights, and political philosophy.

W.D. Ross

A philosopher known for his contributions to deontological ethics, emphasizing the role of moral duties and the concept of prima facie obligations.