Question

Air-USA has a policy of booking as many as 21 persons on an airplane that can seat only 20. (Past studies have revealed that only 85% of the booked passengers actually arrive for the flight.)

Find the probability that if Air-USA books 21 persons, not enough seats will be available.
prob =

Is this probability low enough so that overbooking is not a real concern for passengers if you define unusual as 5% or less?

• no, it is not low enough to not be a concern
• yes, it is low enough not to be a concern

What about defining unusual as 10% or less?

• no, it is not low enough to not be a concern
• yes, it is low enough not to be a concern

Answer 1