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A casino sells its rooms in advance at $150 a night. However, it wants to save some rooms for last-minute high-stake gamblers that usually spend more than $2000 in one night! There are 150 rooms. The last-minute gamblers usually get the room as a complimentary gift! But their arrival is erratic, as few as 3 may show up, sometimes 10 will show up or even a party of 20. You are planning booking for one night (rarely people stay beyond one night.)
Problem 1: Help the hotel analyze the problem. Explain what data is necessary. Give an example with these three numbers of last-minute high-stake gamblers (3, 10, and 20) to show what a booking limit policy will look like.
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