Question: Historic data has shown that when the hotel is fully booked, there are an average of 5 last - minute cancella'ons, with a standard devia'on

Historic data has shown that when the hotel is fully booked, there are an average of 5
last-minute cancella'ons, with a standard devia'on of 3. Average room rate is $80.
Penalty for overbooking is $200(which is when the hotel must find another hotels room
for the customer). How many rooms should the hotel overbook?

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