A boutique hotel has a capacity of rooms. Hotel records show that, on average, of guests with reservations arrive to check in on a given night. Assuming this pattern remains unchanged, the hotel overbooks, accepting the risk that more than guests may arrive. The number of guests who arrive follows a binomial distribution with success probability . Reservations cost each. If more guests arrive than rooms available, the hotel pays to relocate each extra guest.
(a) Suppose the hotel accepts reservations. the probability that the number of guests arriving is greater than .
(b) Calculate the mean number of guests that will arrive if the hotel accepts exactly reservations.