In the hotel reservation case, suppose the hotel accepts 202 reservations but it only has 200rooms. Let X be the number of guests who will not claim their rooms.
a) Suppose the probability P of no-show is Uniform[0,0.02] distributed and X|P∼Bin(202,P). What is the chance that all guests who claim their rooms will receive one?
(b) If P∼Uniform[0.01−α,0.01 +α], how will the probability in (a) change with α?
use a graph to show the change