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:

Output

The volume of output in terms of products or services from a business, sector, or country within a designated timeframe.

Units

Units are standard measures or quantities used to specify or quantify the dimensions, amount, or capacity of something.

Price-Output Combination

The specific level of output and the price at which that output is sold in the market, relevant in contexts of market equilibrium and firm strategies.

Total Revenue

The total amount of money a firm receives by selling goods or services.