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1. All standard rooms at Hotel Gateway, located next to the cricket stadium, are fully booked during the cricket premier league season. Cancellation occurring during the season is uniformly distributed between five (5) and eight (8) rooms. When a customer with a reservation arrives at the check-in counter, and there are no rooms available, the hotel authorities must accommodate this customer at another partner hotel, but it costs them ?50. If the standard room tariff is ?35, determine the number of rooms that Hotel Gateway staff may overbook. 2. Consider the overbooking situation in Problem #1. If the demand is normally distributed with a mean of 5 and standard deviation of 3, determine the number of rooms that the hotel staff may overbook. 3. Eagle Calendars is a retail shop that buys and sells year planners. Each year in November, they receive one (1) bulk order for planners. It costs Eagle ?1.5 per planner, and they sell them for ?4.5 each. In February, unsold planners are sold in bulk to a paper and pulp mill for ?0.25 each. How many calendars should Eagle order if the demand during the peak season is a uniform distribution between 12,000 and 15,000. 4. A newspaper boy purchases newspapers from an agency every morning at ?0.50 per copy. He gets a commission of ?0.25 for every copy sold. Unsold newspapers can be returned to the news agency at ?0.10 per copy. If the daily demand for newspapers is normally distributed with a mean of 15 and a standard deviation of 3, determine the number of newspapers that the newspaper boy must procure from the agency.
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