Managers at the Dew Drop Inn are concerned about the increasing number of guests who makes reservations but fail to show up. They have decided to institute a policy of over-booking like larger hotel chains. The profit from a paying guest averages $50 per night. The cost of putting up a guest at another hotel is $100 per room per night. Record shows the following number of no-shows over the past three months:
|
No-Shows
|
Frequency
|
|
0
|
18
|
|
1
|
36
|
|
2
|
27
|
|
3
|
9
|
How many rooms should Dew Drop Overbook?