4. A hotel owner needs to decide whether or not to hire an inspector for hotel rooms at a cost of $25,000 per year. The cost of screen out rooms needing rework is $4.00, with a corrective action cost of $20.00. Historically, the average is one in 150 rooms needs rework.

1. What is the probability that a room needs rework? (p).

2. Use the kp rule to decide if zero or 100% in needed.

c. If no room is inspected, then what is the average cost per room?

If the hotel has 200 rooms, how the owner will save per day? Per year?