Answer
11100 0111 1111111 0111 11101 00 10
Saving : -1 (it requires one bit more than normal 4-Bit representation)
Work Step by Step
Value of M is 11100, O is 0111, L is 1111111, K is 11101, A is 00 and I is 10 according to the Variable-Length Encoding, meaning a total of 29 bits.
With the 4-Bit Encoding it would take 7*4 = 28 bits.
The difference is 28-29=-1 bits.
Converting MOLOKAI to variable length code requires one bit more than 4-bit representation because it mostly consists of less frequent letters like M,L etc. which need more bits in variable length encoding.