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Managers at the Dew Drop Inn are concerned about the increasing number of guests who makes reservations but fail to show up. They have decided to institute a policy of over-booking like larger hotel chains. The profit from a paying guest averages $50 per night. The cost of putting up a guest at another hotel is $100 per room per night. Record shows the following number of no-shows over the past three months:
How many rooms should Dew Drop Overbook?
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