Problem:
Hotel California was the unfortunate victim of a hacker attack and lost all its data. The manager has luckily noted down the demand for the last 7 Thursdays on a piece of paper and they were 45, 43, 51, 56, 45, 42, 53 (the average is 47.85 and the standard deviation is 5.02). The hotel demand usually appears only in the week prior to the stay night. The hotel sells rooms at a single price of $100/night. There is now a group request for next Thursday night (just one night stay) for 40 rooms and the manager has to negotiate a price. The hotel has 60 rooms and none have been sold so far.
Based on this information, which of the following is (approximately) a minimum price (for the entire group) that the manager should not go below in his negotiation for the group request.
(a) $0
(b) $40
(c) $1,280
(d) $2,780
(e) $4,000