Lauren, a Hotel manager, is tired of customers who make reservations and then don’t show up. Rooms rent for $100 a night and cost $25 to maintain per day. Overflow customers can be sent to a cheap Motel for $70 a night (paid by Lauren). Lauren’s records of no-shows over the past six months are given below. How much is C_u?

 

No-Shows	Probability
0	0.15
1	0.25
2	0.30
3	0.30

Answer rating: 100% (QA)

Cost 25 Price 100 Cost of overage ... View the full answer