Question: Can you please solve and explain the below question in detail?Thanks. An airline decides to start an overbooking policy by accepting n > 200 reservations

Can you please solve and explain the below question in detail?Thanks.

Can you please solve and explain the below question in detail?Thanks. An

An airline decides to start an overbooking policy by accepting n > 200 reservations for flights operated by their 200-seats aircrafts. If more than 200 passengers show up for a flight, the first 200 are accepted whereas the remaining receive some kind of financial compensation. From historical data, it is estimated that the no-show probability for any passenger is 0.05 and that passengers can be considered independent. (a) Let S, be the random variable representing the number of passengers who show up for a 200-seats flight with n (possibly > 200) reservations. Give the distribution of S, and express E[S,] and Var[S,] as functions of n. (b) The airline CEO would like to find the maximal value n such that P(S,,

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