An airline charges the following baggage fees: $25 for the rst bag and $35 for the second.

Question:

An airline charges the following baggage fees: $25 for the rst bag and $35 for the second. Suppose 54% of passengers have no checked luggage, 34% have one piece of checked luggage and 12% have two pieces. We suppose a negligible portion of people check more than two bags.

(a) Build a probability model, compute the average revenue per passenger, and compute the corresponding standard deviation.

(b) About how much revenue should the airline expect for a ight of 120 passengers? With what standard deviation? Note any assumptions you make and if you think they are justified.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

OpenIntro Statistics

ISBN: 9781943450077

4th Edition

Authors: David Diez, Mine Çetinkaya-Rundel, Christopher Barr

Question Posted: