LOTUS BLOSSOM HOTEL
The Lotus Blossom Hotel has a total of 300 rooms. Like many hotels, and most major airlines, the Lotus Blossom Hotel has adopted a policy of overbooking in an effort to maximize usage of its available lodging capacity.
Past data indicate that 12% of the people holding reservations cancel the reservation, or simply do not show up at the hotel on a given night, while 88% of the people with reservations show up to keep their reservation. Lotus Blossom management believes that it is a good approximation to the real world to assume that each reservation is kept or cancelled, independent of the situation with any other reservation.
Lotus Blossom management is conc...