Question: Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from past

Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from past history that an average of 40 customers (with a standard deviation of 26) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is
$140
. If the flight is overbooked, the airline has a policy of getting the customer on the next avallable flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages
$270

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