Question

On a given MCO-ATL flight, there are 200 seats. The average ticket price is $ 475 and the number of no-shows is normally distributed with a mean of 30 and standard deviation of 15. Assuming that you are going to overbook and that each person denied a seat is compensated for $ 800, answer the following question.

1) Assuming you accept 220 reservations, what is the probability that you will have to deal with bumped passengers?

**Please show work

Answer #1

23.On a given Philadelphia-Los Angeles flight, there are 200
seats. Suppose the ticket price is $475 on average and the number
of passengers who reserve a seat but do not show up for departure
is normally distributed with mean 30 and standard deviation 15. You
decide to overbook the flight and estimate that the average loss
from a passenger who will have to be bumped (if the number of
passengers exceeds the number of seats) is $800. What is the...

United flight 15 from New York’s JFK to San Francisco uses a
Boeing 757-200 with 182 seats. Because some people with
reservations don’t show up, United can overbook by accepting more
than 182 reservations. If the flight is not overbooked, the airline
will lose revenue due to empty seats, but if too many seats are
sold and some passengers are denied seats, the airline loses money
from the compensation that must be given to bumped passengers.
Assume that there is...

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