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Given the following information, determine the optimal overbooking policy for Lindi's Beauty Salon. The salon's capacity is 8 patrons. The historic number of no-shows for a typical day along with the probability of occurrence is shown in the table. The average profitability per patron is $100.00 and the cost of lost goodwill per patron due to overbooking is approximately $50.
No-Shows Probability
0 0.501 0.302 0.20
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