A Five-Star Hotel Accepts 100 Room Reservations Daily

question 20

Multiple Choice

A five-star hotel accepts 100 room reservations daily.For each reservation accepted,there is a 7% chance that the guest will not arrive.You decide to build a simulation model to describe the number of guests who will show up.The best appropriate distribution to use is:

• A)normal
• B)continuous uniform
• C)discrete uniform
• D)binomial
• E)triangular

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Definitions:

Risk-free Asset

An investment with a guaranteed return and no risk of financial loss.