No-Shows Probability 0.30 1 0.20 0.10 0.30 0.10 134
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
The Blue Roof Inn overbooks two rooms a night. Room
rates run $100 a night but cost only $30 to maintain.
Bumped customers are sent to a nearby hotel for $80 a
night. What is the cost of overbooking? What is the cost
of underbooking? Given the following distribution of
no-shows, should Blue Roof continue its current policy?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
