Question: 2 1 . A company uses a risk - based overbooking policy to set the booking limit . The capacity is 1 5 0 ,

21. A company uses a risk-based overbooking policy to set the booking limit. The capacity is 150, the fare for shows is $142 and the denial service cost is $300. The demand distribution is Normal with mean 200 and standard deviation 50. It is known that the number of no-shows depends on the number of bookings and that the no-show rate is 15 percent. Find the optimal booking limit b

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