Please explain specifically

Question 2: (40 points) The Park Hyatt Philadelphia, 118 King Queen rooms. Full fare is $225 targeting business travelers. Also, Hyatt offers a discount fare of $159 for a mid week stay targeting leisure travelers. Demand for low fare rooms is abundant. Most of the high fare demand occurs within a few days of the actual stay, and follows an exponential distribution with mean 27.3. a. What are the unit overstocking cost and the unit understocking cost? (10 points) b. What are the probability of overstocking and the probability of understocking? (10 points) c. How many rooms should be protected for full fares to minimize expected cost (maximize expected total revenue)? Hint: Use inverse-transformation of exponential cumulative distribution. (20 points)