A hotel near the university always fi lls up on the evening before football games. History has shown
that when the hotel is fully booked, the number of last-minute cancellations has a mean of 5 and
standard deviation of 3. The average room rate is $80. When the hotel is overbooked, the policy is to
fi nd a room in a nearby hotel and to pay for the room for the customer. This usually costs the hotel
approximately $200 since rooms booked on such late notice are expensive. How many rooms should
the hotel overbook?