Question: On a given GNV - ATL flight, there are 2 0 0 seats, and each seat is sold at an average ticket price of $

On a given GNV-ATL flight, there are 200 seats, and each seat is sold at an average ticket price of $ 500. It has been observed that on most days in the past month, the flight rarely approaches 100% occupancy since there are passenger no-shows. Hence, the airline decides to overbook flights. The airline manager assigned the task of determining the number of seats to overbook on this flight starts by estimating no-shows using historical information. However, she encounters an interesting conundrum: the mean no-shows changes based on the rate offered to customers with a confirmed booking who are denied a seat on the flight (referred to as the service denial rate).
She would like to start by analyzing the impact of an overbooking policy by considering three specific service denial rates

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