Question: Because many passengers who make reservations do not show up, airlines often overbook flights (sell more tickets than there are seats). A Boeing 767-400ER holds

Because many passengers who make reservations do not show up, airlines often overbook flights (sell more tickets than there are seats). A Boeing 767-400ER holds 245 passengers. If the airline believes the rate of passenger no-shows is 5% and sells 255 tickets, is it likely they will not have enough seats and someone will get bumped?
a) Use the Normal model to approximate the Binomial to determine the probability of at least 246 passengers showing up.
b) Should the airline change the number of tickets they sell for this flight? Explain.

Step by Step Solution

3.30 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Probability of at least 246 passengers showing up can be evaluated using the Nor... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

452-M-S-D-D (95).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!