Assignment Instructions

Indian Airways knows from past data that for a particular route, an average of $25$ business customers $($with a standard deviation of $15)$ cancel their bookings and do not show up for the flight. The revenue per ticket is INR $12,500.$ If the flight is overbooked, the airline has a policy of getting the customer the next available flight, as well as a free round trip ticket, the cost of which is INR $25,000.$ By how many seats should the airline overbook its flight $($round up the value$)?$ Provide the calculation.

Submission Instructions

Submit your answers in a Microsoft Word$/$Microsoft Excel file and include calculations wherever necessary to justify your answer.