Question: Problem 2 0 - 5 ( Algo ) Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be

Problem 20-5(Algo)
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 22 customers (with a standard deviation of 12) cancel their reservation or do not show for the flight.
Revenue from a ticket on the flight is $103. If the flight is overbooked, 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 $212.
Super Discount considers the cost of flying the plane from New York to Los Angeles a sunk cost.
By how many seats should Super Discount overbook the flight?
Note: Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do not round intermediate
calculations. Round your answer to the nearest whole number.
 Problem 20-5(Algo) Next week, Super Discount Airlines has a flight from

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