A small feeder airline knows that the probability is .10 that a reservation holder will not show up for its daily 7:15 a.m. fight into a hub airport. The fight carries 10 passengers.
(a) If the fight is fully booked, what is the probability that all those with reservations will show up?
(b) If the airline overbooks by selling 11 seats, what is the probability that no one will have to be bumped?
(c) That more than one passenger will be bumped?
*(d) The airline wants to overbook the fight by enough seats to ensure a 95 percent chance that the fight will be full, even if some passengers may be bumped. How many seats would it sell?

  • CreatedAugust 19, 2015
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