Six months before its annual convention, the AmericanMedical Association must determine how many rooms toreserve. At this time, the AMA can reserve rooms at a costof $50 per room. The AMA must pay the $50 room costeven if the room is not occupied. The AMA believes that thenumber of doctors attending the convention will be normallydistributed, with a mean of 5,000 and a standard deviationof 1,000. If the number of people attending the conventionexceeds the number of rooms reserved, extra rooms must bereserved at a cost of $80 per room. Use simulation todetermine the number of rooms that should be reserved tominimize the expected cost to the AMA.

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
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Six months before its annual convention, the AmericanMedical Association must determine how many rooms toreserve. At this time, the AMA can reserve rooms at a costof $50 per room. The AMA must pay the $50 room costeven if the room is not occupied. The AMA believes that thenumber of doctors attending the convention will be normallydistributed, with a mean of 5,000 and a standard deviationof 1,000. If the number of people attending the conventionexceeds the number of rooms reserved, extra rooms must bereserved at a cost of $80 per room. Use simulation todetermine the number of rooms that should be reserved tominimize the expected cost to the AMA.

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