A Hotel Manager Must Decide How Many Rooms to Overbook

Multiple Choice

A hotel manager must decide how many rooms to overbook. Room rates are $125 per night and each room costs $45 to maintain. A bumped customer is sent to another hotel at a cost of $75. Given the distribution of no-shows below, how many rooms should the manager overbook?

A) Overbook 9 rooms.
B) Overbook 10 rooms.
C) Overbook 11 rooms.
D) Overbook 12 rooms.