Question: Book: Operations And Supply Chain Management Jacobs & Chase 14e Tree top Airlines has a completely booked flight from New York to LA. The airline

Book: Operations And Supply Chain Management Jacobs & Chase 14e

Tree top Airlines has a completely booked flight from New York to LA. The airline knows from past history that an average of 20 customer with a standard deviation of 10 cancel their reservations or do not show up for the flight. Revenue from a ticket on the flight is $100. If the flight is over booked the airline has a policy of getting the customer on the next available flight and giving the person a free round trip ticket on a future flight. The cost of this free round trip ticket averages $210.Tree top considers that cost of flying the plane from NY to LA a sunk cost. By how many seats should Tree Top overbook the flight?

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