Airlines book more seats than are actually available, then “bump” would-be passengers whenever more people show up than there are seats. Through the first quarter of 2009, the rate at which passengers were bumped was 1.40 per 1000 passengers. Assuming that, on average, the probability of any given passenger being bumped is 1.40/1000, or 0.00140: Source: U.S. Bureau of Transportation Statistics, June 2009.
a. Emily is flying nonstop to visit Besco, Inc., for a job interview. What is the probability that she will be bumped?
b. Ten members of the Besco board of directors will be flying nonstop to the firm’s annual meeting, and their flights are independent of each other. What is the probability that at least one of them will be bumped?
c. Besco sales personnel made a total of 220 nonstop flights last year, and they experienced a total of four bumping. Could the company’s experience be considered as very unusual?