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Airlines and hotels often grant reservations in excess of capacity to minimize losses due to no-shows. Suppose the records of a hotel show that, on the average, \(10 \%\) of their prospective guests will not claim their reservation. If the hotel accepts 215 reservations and there are only 200 rooms in the hotel, what is the probability that all guests who arrive to claim a room will receive one?

Short Answer

Expert verified
Answer: Approximately 96.28%.

Step by step solution

01

Identify the parameters of the binomial distribution

The binomial distribution is characterized by two parameters: the number of trials (n) and the probability of success in those trials (p). In this case, n = 215 (number of reservations) and p = 0.9 (probability of guests showing up).
02

Compute the probability using the complementary probability

We want to compute P(X ≤ 200). However, it is more convenient to compute its complementary probability, P(X > 200), since we only need to consider the cases when there are more than 200 guests. Then, we can find P(X ≤ 200) = 1 - P(X > 200).
03

Calculate the probabilities of each case where there are more than 200 guests

We need to find the probabilities for each case where there are more than 200 guests (201 to 215 guests) and sum them up to obtain P(X > 200). The probability mass function for a binomial distribution is: \(P(X=k) = \binom{n}{k} p^k (1-p)^{n-k}\) Here, we will apply this formula for each case where k ranges from 201 to 215 and sum the probabilities.
04

Sum the probabilities and compute the complementary probability

Once we calculate the probabilities for each case, we sum them up to find P(X > 200). Finally, we compute P(X ≤ 200) = 1 - P(X > 200) to obtain the probability we're looking for.
05

Calculate the probability

Now we will compute the final probability: \(P(X \leq 200) = 1 - \sum_{k=201}^{215} \binom{215}{k} (0.9)^k (0.1)^{215-k}\) Calculating the summation and subtracting from 1, we get the final probability: \(P(X \leq 200) \approx 0.9628\) The probability that all guests who arrive to claim a room will receive one is approximately 96.28%.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Binomial Distribution
A binomial distribution is a probability distribution that summarizes the likelihood that a value will take one of two independent states and is used when there are two possible outcomes. Each outcome is referred to as a "trial." This distribution is applicable when trials are repeated a fixed number of times, each trial is independent, and the probability of the outcome remains constant throughout the trials.
For instance, consider the problem of a hotel accepting reservations. Here, a reservation either shows up or doesn’t show up, which forms a classical scenario of a binomial distribution.
  • Number of trials (n): This represents the number of reservations the hotel accepted, which is 215.
  • Probability of success (p): The probability that a guest with a reservation shows up. In this case, it is 90% or 0.9, as 10% do not show up.
This is a perfect setup for applying binomial distribution to understand the likelihood of having a certain number of guests claiming their reservations.
Complementary Probability
The complementary probability principle is a powerful tool in calculating probabilities for events, particularly when the direct calculation of the desired event is complex or inconvenient. It revolves around the idea that the probability of an event plus the probability of its complement equals one.
In our scenario, to simplify the mathematics, we utilize the complementary probability. Instead of directly calculating the probability of 200 or fewer guests showing up (P(X ≤ 200)), we calculate the probability of more than 200 guests showing up (P(X > 200)) and then subtract it from 1.
Mathematically, this means:
  • \( P(X ≤ 200) = 1 - P(X > 200) \)
This essentially helps to consider only the specific cases where we have issues, i.e., more guests than rooms, making it already significant in terms of assurance.
Probability Mass Function
The probability mass function (PMF) is a fundamental concept when dealing with discrete random variables such as those described by a binomial distribution. It provides the probabilities of each possible outcome occurring.
In our hotel problem, the PMF allows us to calculate the probability of exactly \( k \) guests claiming their reservation out of the \( n \) reservations, given a chance \( p \) of each guest showing up. The PMF for a binomial distribution is formulated as:
\[ P(X = k) = \binom{n}{k} p^k (1-p)^{n-k} \]
  • \( \binom{n}{k} \) is the binomial coefficient, which determines the number of ways \( k \) successes can occur in \( n \) trials.
  • \( p^k \): Probability of \( k \) guests showing up.
  • \( (1-p)^{n-k} \): Probability of the remaining guests not showing up.
In the given problem, this function will help us calculate the probability for each possible number of arrivals over 200, from 201 to 215. The solution is obtained by summing these individual probabilities to find the total probability of more than 200 arrivals and thus the complementary probability for 200 or fewer arrivals.

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