Question

A motel has 7 rooms which sell at a full price of $175. It computed cumulative probabilities of the number of rooms sold at full price based on the last 56 days. Interpret the meaning of the .98 value (don’t explain how it was computed).

# Rooms Sold at Full Price	Cumulative Probability
0	0.05
1	0.13
2	0.33
3	0.51
4	0.79
5	0.94
6	0.98
7	1.00

Answer 1

# Rooms Sold at Full Price	Cumulative Probability
0	0.05
1	0.13
2	0.33
3	0.51
4	0.79
5	0.94
6	0.98
7	1.00

As the cumulative probability at any point is the the sum of all prior probability and the probability of that point.

we can say that 0.98 is the cumulative probability of selling the 6 rooms at full price.

Interpretation: The probability of selling at most 6 rooms at full price during the last 56 days is 0.98.