Question: Problem 1 ( 2 pts ) Consider Istanbul - London ( single - leg ) flight with 2 2 0 seats. a ) ( 1

Problem 1(2 pts) Consider Istanbul-London (single-leg) flight with 220 seats. a)(1 pts) The historic show rate has averaged 90% on this flight. What will be the optimal overbooking limit calculated using deterministic heuristic? b)(1 pts) Assume that the ticket price is $300. The number x of no-shows is independent of total bookings and is given by a normal distribution with mean of 55 and standard deviation of 12. The denied boarding cost is $400 per denied boarding. Calculate the optimal booking limit.

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