Question

ABC Airlines’ first class cabins have 10 seats in each plane. ABC’s overbooking policy is to...

ABC Airlines’ first class cabins have 10 seats in each plane. ABC’s overbooking policy is to sell up to 11 first class tickets, since cancellations and no-shows are always possible (and indeed are quite likely). For a given flight on ABC Airlines, there were 11 first class tickets sold. Suppose that each of the 11 persons who purchased tickets has a 20% chance of not showing up for the flight, and that the events that different persons show up for the flight are independent.

If the probability of not showing up increases, ABC Airlines may even consider sell up t0 12 first class tickets. What is the minimum probability of not showing up that may drive ABC to make this decision?

How to do this without guess and check?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In this exercise we examine the effects of overbooking in the airline industry. Ontario Gateway Airlines'...
In this exercise we examine the effects of overbooking in the airline industry. Ontario Gateway Airlines' first class cabins have 10 seats in each plane. Ontario's overbooking policy is to sell up to 11 first class tickets, since cancellations and no-shows are always possible (and indeed are quite likely). For a given flight on Ontario Gateway, there were 11 first class tickets sold. Suppose that each of the 11 persons who purchased tickets has a 20% chance of not showing...
Each of Gateway Airlines’ planes has 10 seats in its first-class cabin. Gateway’s overbooking policy on...
Each of Gateway Airlines’ planes has 10 seats in its first-class cabin. Gateway’s overbooking policy on their flight from Boston to NYC is to sell up to 15 first-class tickets since no-shows are somewhat frequent on such a short route. Let X represent the number of first-class tickets sold on a flight, where each ticket has a 90% chance of being sold. Suppose there is a 30% chance that a passenger who bought a ticket does not show up; let...
Airlines routinely sell more tickets for flights than the number of seats on the plane. “Overbooking”...
Airlines routinely sell more tickets for flights than the number of seats on the plane. “Overbooking” seldom causes problems because a statistically predictable number of ticketholders fail to show up for flights. In contrast, each retailer of hearing aids typically has the capacity to sell many more hearing aids per week than it actually sells. “Excess capacity” is routine for retailers of hearing aids. Contrast the effects of overbooking and excess capacity on profits lost by the seller when the...
Airlines sometimes overbook flights. Suppose that for a plane with 50 seats, 55 passengers have tickets....
Airlines sometimes overbook flights. Suppose that for a plane with 50 seats, 55 passengers have tickets. Define the random variable Y as the number of ticketed passengers who actually show up for the flight. The probability mass function of Yappears in the accompanying table. y 45 46 47 48 49 50 51 52 53 54 55 p(y)       0.04     0.10     0.11     0.14     0.25     0.19     0.06     0.05     0.03     0.02     0.01   (a) What is the probability that the flight will accommodate all ticketed...
(1 point) A certain airline has 170 seats available for a flight from YYC (Calgary International...
(1 point) A certain airline has 170 seats available for a flight from YYC (Calgary International Airport) to LAX (Los Angeles International Airport). Because people with reservations do not show up for their flight 11% of the time, the airline always overbooks this flight. That is, there are more passengers that have tickets on the flight than there are seats. Suppose the airline has 183 passengers booked for 170 seats. Assume one person showing up for the flight does not...
Airlines sometimes overbook flights. Suppose that for a plane with 50 seats, 55 passengers have tickets....
Airlines sometimes overbook flights. Suppose that for a plane with 50 seats, 55 passengers have tickets. Define the random variable Y as the number of ticketed passengers who actually show up for the flight. The probability mass function of Y appears in the accompanying table. y 45 46 47 48 49 50 51 52 53 54 55 p(y) 0.02 0.10 0.12 0.14 0.25 0.17 0.01 0.05 0.06 0.05 0.03 Calculate V(Y) and σY Determine the probability that Y is within...
Airlines sometimes overbook flights. Suppose that for a plane with 50 seats, 55 passengers have tickets....
Airlines sometimes overbook flights. Suppose that for a plane with 50 seats, 55 passengers have tickets. Define the random variable Y as the number of ticketed passengers who actually show up for the flight. The probability mass function of Y appears in the accompanying table. y 45 46 47 48 49 50 51 52 53 54 55 p(y) 0.05 0.10 0.12 0.14 0.25 0.17 0.05 0.02 0.06 0.01 0.03 Calculate V(Y) and σY. (Round your variance to four decimal places...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT