(4) (1.5 pts) A Delta flight from ATL to PUJ (Punta Cana, Dominican Republic) has a...

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(4) (1.5 pts) A Delta flight from ATL to PUJ (Punta Cana, Dominican Republic) has a capacity of 100 passengers and fills up quickly for the Thanksgiving holiday. Delta does not want any seats to be wasted on this flight due to no-shows. The ticket costs $500. In the past, no-shows have followed a normal distribution with a mean of 5 and a standard deviation of 4. If Delta cannot accommodate a passenger on this flight, the passenger will be sent to Miami on a Delta flight and then to San Juan, PR on an American Airlines flight. The passenger will spend the night at a San Juan airport hotel. The next morning, the passenger will be flown by American to Punta Cana. In addition to the DBC compensation based on the US-DOT formula, Delta airline needs to pay American Airlines $800 for reaccommodation. The hotel and food vouchers cost $150. Compute the optimal overbooking limit. (4) (1.5 pts) A Delta flight from ATL to PUJ (Punta Cana, Dominican Republic) has a capacity of 100 passengers and fills up quickly for the Thanksgiving holiday. Delta does not want any seats to be wasted on this flight due to no-shows. The ticket costs $500. In the past, no-shows have followed a normal distribution with a mean of 5 and a standard deviation of 4. If Delta cannot accommodate a passenger on this flight, the passenger will be sent to Miami on a Delta flight and then to San Juan, PR on an American Airlines flight. The passenger will spend the night at a San Juan airport hotel. The next morning, the passenger will be flown by American to Punta Cana. In addition to the DBC compensation based on the US-DOT formula, Delta airline needs to pay American Airlines $800 for reaccommodation. The hotel and food vouchers cost $150. Compute the optimal overbooking limit.

Answer rating: 100% (QA)

To compute the optimal overbooking limit we need to determine the probability of exceeding the fligh... View the full answer