Problem 3 Because not all passengers show up for their reservations, a cab company frequently overbooks. Suppose a driver is booked with 6 passengers on unloaded by 10m19345323'? from CourseHcrooom on 11-08-2022 1?:1058 GMT 06:00 omNilal'12.1'34'3'966l'l'viidtarrnpdf the same route and the cab can accommodate up to 4 passengers. The probability that a passenger does not show up is 0.2, and passengers behave independently. 1. What is the expected number of passengers that will show up? 2. What is the probability that every passenger who shows up can be accommodated? The cab company is seeking to maximize it's expected revenue. The cab company earns $12 for every passenger picked up, loses $2 per empty seat, and loses $8 per passenger that they are unable to accomodate. (Note: If you are having trouble with this part, make sure you show your work to earn partial credit.) 1. How many passengers should the driver book to maximize expected revenue? 2. Suppose they can use a larger cab that can accomodate up to 7 pas- sengers. How many passengers should the driver book now