Question: Answer is 0.5878 please explain how we can get this answer Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity

Answer is 0.5878 please explain how we can get this answer

Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity of 100 passengers. On average, 12 ticket holders cancel their reservations at the last minute, so the company intentionally overbooks the flight. Cancellations can be described by a normal distribution with a standard deviation of 2.6. Profit per passenger is $108. If a passenger arrives but cannot board due to overbooking, the company policy is to provide compensation of $154. What is the optimal probability of having one or more empty seats on the plane? 0.5878 margin of error +/- 0.001

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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

Students Have Also Explored These Related General Management Questions!

Please show formula and each step. Question 14 0/1 pts Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity of 100 passengers. On average, 17 ticket holders cancel their...

round to 2 decimal places Question 14 1.34 pts Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity of 100 passengers. On average, 13 ticket holders cancel their...

9. Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity of 100 passengers. On average, 10 ticket holders cancel their reservations at the last minute, so the company...

Question 9 10 pts A large movie theater buys popcom in 40-pound bags. The theater uses an average of 7,541 bags per month. Preparing an order and receiving a shipment of popcorn involves a cost of...

Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity of 100 passengers. On average, 8 ticket holders cancel their reservations at the last minute, so the company...

Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity of 100 passengers. On average, 11 ticket holders cancel their reservations at the last minute, so the company...

Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity of 100 passengers. On average, 8 ticket holders cancel their reservations at the last minute, so the company...

Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity of 100 passengers. On average, 11 ticket holders cancel their reservations at the last minute, so the company...

Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity of 100 passengers. On average, 15 ticket holders cancel their reservations at the last minute, so the company...

Offwefly Airlines has a daily flight from Sacramento to Las Vegas with a capacity of 100 passengers. On average, 9 ticket holders cancel their reservations at the last minute, so the company...

1. Which of the following statements concerning bonds is incorrect? a. They involve blended payments of principal and interest. b. They have a fixed maturity date, at which time the issuer repays the...

Explain the Keynesian theory of interest-rate determination. What differences do you see between this theory and the classical theory of the interest rate?

Nicholas Johnson is a single individual. He claims a standard deduction of $13,500. His salary for the year was $156,800. What is his taxable income? a. $105,698 b. $143,300 c. $122,750

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...