Question: Problem 2. please show all your work. The Silver Star Hotel in Miami, FL, is considering doing overbooking in order to deal with the constant

Problem 2. please show all your work. The Silver

Problem 2. please show all your work. The Silver Star Hotel in Miami, FL, is considering doing overbooking in order to deal with the constant problem they have with no-shows. The table given below presents the number of no-shows and the probability of each occurring. # of No-Shows (d) 0 1 2 3 Probability of No-Shows occurring Pd) 0.12 0.07 0.10 0.02 0.07 0.22 0.04 0.19 0.01 0.16 4 5 6 7 8 9 a) What would be your recommendation for overbooking if the average rate per room per night is $115 and the cost of not honoring a reservation is $215? b) What is the expected loss for your overbooking choice? c) State the reasoning for selecting your overbooking choice

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