A rental car company will have 100 cars available for rent on a particular day. It expects that demand for that day will be very high, so demand is certain to be higher than 300 bookings. If it expects a 15% no-show rate, what booking level should it set if it wants to ensure that the probability that a booking will be denied service is 0.0002? (You can use the normal approximation to the binomial distribution, as described below, to estimate your answer.)
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A rental car company will have 100 cars available for rent on a particular day. It expects that
demand for that day will be very high, so demand is certain to be higher than 300 bookings. If
it expects a 15% no-show rate, what booking level should it set if it wants to ensure that the
probability that a booking will be denied service is 0.0002? (You can use the normal
approximation to the binomial distribution, as described below, to estimate your answer.)
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