Question: A local hardware store rents tools by the hour. It estimates its cost per hour to obtain and maintain a typical tool is $ 1
A local hardware store rents tools by the hour. It estimates its cost per hour to obtain and maintain a typical tool is $hour It rents the tools for $ an hour. It is growing concerned about customers not showing up after making a tool reservation. This stores hallmark is being very friendly, so it does not want to institute a penalty for a noshow It is considering adopting an overbooking strategy. If an overbooked guest shows up to rent tools and all the tools are taken, the store has an agreement with another local hardware store where they help each other by providing the tools to each other for cost or $ Over the past days, it has found the following noshow pattern. The number represents how many days out of the that many noshows occurred.
No Shows
Number
How many reservations should the store overbook? HINT: Your best bet will be to use the critical fractile method.
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