A golf instructor offers 1-hour private lessons from 2 pm to 6 pm every Saturday afternoon. His hourly rate is $60. The instructor takes appointments during the weekdays. Recently, the instructor receives quite a few late cancellations in Saturday morning. He can do nothing given the short notice. Therefore, the instructor institutes an overbooking policy. In case a customer cannot be served, the instructor will give a $40 certificate (he buys it from the golf club) for a free round of golf. The number of no-shows can be 1, 2, 3, or 4, each with a probability of 0.25. How many reservations should the instructor take

The answer is 8.

Step-by-step explanation:

He is guaranteed to make $240 between 2 and 6 pm every Saturday afternoon. For each time that both of the 2 customers booked for the same hour does not cancel, he earns only $20. Considering that the probability of cancellation is 25%, if he books 8 customers for the 4 hour period on Saturday afternoon, he is making an extra $80 which bumps up his total earnings to $320. If he accepts any booking after 8, each is going to cost him $40. So the total number of reservations he should take is 8.

I hope this answer helps.

15 units use socratic

step-by-step explanation: 15 units

total amount of money that he should pay if he has not used his duty free exemption is $98

step-by-step explanation:

given a united states citizen returning to the states declares the following items at the customs office: 3 shirts at $8.50 each 2 dresses at $27.50 each 1 pair of gold cuff links at $17.50 per pair. we have to find how much he pay

cost of 3 shirts if one cost at $8.50 is

cost of 2 dresses if one cost at $27.50 is  

cost of 1 pair of gold cuff at $17.50

so, total amount of money that he should pay if he has not used his duty free exemption is   $25.5+$55+$17.50=$98