A popular resort hotel has 300 rooms and is usually fully booked. About 7% of the time a reservation is canceled before the 6:00 p.m. deadline with no pen-alty. What is the probability that at least 285 rooms will be occupied? Use the binomial distribution to find the exact valu

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Answer:

8.69% probability that at least 285 rooms will be occupied.

Step-by-step explanation:

For each booked hotel room, there are only two possible outcomes. Either there is a cancelation, or there is not. So we use concepts of the binomial probability distribution to solve this question.

However, we are working with a big sample. So i am going to aproximate this binomial distribution to the normal.

Binomial probability distribution

Probability of exactly x sucesses on n repeated trials, with p probability.

Can be approximated to a normal distribution, using the expected value and the standard deviation.

The expected value of the binomial distribution is:

[tex]E(X) = np[/tex]

The standard deviation of the binomial distribution is:

[tex]\sqrt{V(X)} = \sqrt{np(1-p)}[/tex]

Normal probability distribution

Problems of normally distributed samples can be solved using the z-score formula.

In a set with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the zscore of a measure X is given by:

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

When we are approximating a binomial distribution to a normal one, we have that [tex]\mu = E(X)[/tex], [tex]\sigma = \sqrt{V(X)}[/tex].

In this problem, we have that:

A popular resort hotel has 300 rooms and is usually fully booked. This means that [tex]n = 300[/tex]

About 7% of the time a reservation is canceled before the 6:00 p.m. deadline with no pen-alty. What is the probability that at least 285 rooms will be occupied?

Here a success is a reservation not being canceled. There is a 7% probability that a reservation is canceled, and a 100 - 7 = 93% probability that a reservation is not canceled, that is, a room is occupied.  So we use [tex]p = 0.93[/tex]

Approximating the binomial to the normal.

[tex]E(X) = np = 300*0.93 = 279[/tex]

[tex]\sigma = \sqrt{V(X)} = \sqrt{np(1-p)} = \sqrt{300*0.93*0.07} = 4.42[/tex]

The probability that at least 285 rooms will be occupied is 1 subtracted by the pvalue of Z when X = 285. So

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

[tex]Z = \frac{285- 279}{4.42}[/tex]

[tex]Z = 1.36[/tex]

[tex]Z = 1.36[/tex] has a pvalue of 0.9131.

So there is a 1-0.9131 = 0.0869 = 8.69% probability that at least 285 rooms will be occupied.

The reservation of the hotel rooms follow a normal distribution.

The probability that at least 285 rooms are occupied is 0.0874

The given parameters are:

[tex]\mathbf{n = 300}[/tex] --- number of rooms

[tex]\mathbf{p = 7\%}[/tex] --- proportion of rooms, reserved

The sample mean is calculated as:

[tex]\mathbf{\bar x = np}[/tex]

So, we have:

[tex]\mathbf{\bar x = 300 \times 7\%}[/tex]

[tex]\mathbf{\bar x = 21}[/tex]

The population mean, according to binomial distribution is:

[tex]\mathbf{\mu = n - \bar x}[/tex]

[tex]\mathbf{\mu = 300 - 21}[/tex]

[tex]\mathbf{\mu = 279}[/tex]

The standard deviation is:

[tex]\mathbf{\sigma_x=\sqrt{\bar x \times (1 - p)}}[/tex]

So, we have:

[tex]\mathbf{\sigma_x=\sqrt{21 \times (1 - 7\%)}}[/tex]

[tex]\mathbf{\sigma_x=\sqrt{21 \times (1 - 0.07)}}[/tex]

[tex]\mathbf{\sigma_x=\sqrt{19.53}}[/tex]

[tex]\mathbf{\sigma_x=4.42}[/tex]

Calculate the z-score

[tex]\mathbf{z = \frac{x - \mu}{\sigma_x}}[/tex]

So, we have:

[tex]\mathbf{z = \frac{285 - 279}{4.42}}[/tex]

[tex]\mathbf{z = \frac{6}{4.42}}[/tex]

[tex]\mathbf{z = 1.357}[/tex]

The probability that at least 285 rooms are occupied is:

[tex]\mathbf{P(x > 285) = P(z > 1.357)}[/tex]

From z-score of probabilities, we have:

[tex]\mathbf{P(x > 285) = 0.0873906}[/tex]

Approximate

[tex]\mathbf{P(x > 285) = 0.0874}[/tex]

Hence, the probability that at least 285 rooms are occupied is 0.0874

Read more about probabilities at:

https://brainly.com/question/11234923