Question: Problem 4 . An airline has found that the number of people who purchased tickets and did not show up for a flight is normally
Problem An airline has found that the number of people who purchased tickets and did not show up for
a flight is normally distributed with mean of and standard deviation of The airline estimates that
the ill will and penalty costs associated with not being able to board a passenger holding confirmed
booking are estimated to be $ Assume that the opportunity cost of flying an empty seat is $price
that a passenger who shows up would pay There are seats on the plane. How much should airline
overbook the flight
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