Business, 21.08.2020 18:01 datboyjulio21

A local hardware store rents tools by the hour. It estimates its cost per hour to obtain and maintain a typical tool is $12/hour. It rents the tools for $30 an hour. It is growing concerned about customers not showing up after making a tool reservation. (This store’s hallmark is being very friendly, so it does not want to institute a penalty for a no-show). It is considering adopting an overbooking strategy. If an overbooked guest shows up to rent tools and all the tools are taken, the store has an agreement with another local hardware store where they help each other by providing the tools to each other for cost (or $12). Over the past 20 days, it has found the following no-show pattern. The number represents how many days out of the 15, that many no-shows occurred.

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A local hardware store rents tools by the hour. It estimates its cost per hour to obtain and maintai...

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