Question: HOTEL OVERBOOKING STRATEGY ( 2 0 points ) A hotel near the university always fills up on the evening before football games. History has shown

HOTEL OVERBOOKING STRATEGY (20 points)
A hotel near the university always fills up on the evening before football games. History has shown that when the hotel is fully booked, the number of last-minute cancellations has the following distribution:
\table[[Cancellations,0,1,2,3,4,5,6,7,8,9,10],[Probability,0.05,0.15,0.15,0.1,0.2,0.1,0.1,0.06,0.04,0.04,0.01]]
The average room rate is $90. When the hotel is overbooked, policy is to find a room in a nearby hotel any to pay for the room for the customer. This usually costs the hotel approximately $250 since rooms booked on such late notice are expensive.
a) How many rooms should the hotel overbook?
b) What is the Expected profit of your optimal strategy in a).
 HOTEL OVERBOOKING STRATEGY (20 points) A hotel near the university always

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