A commuter airline deliberately overbooks flights, figuring that only 75% of passengers with reservations show up for its flights. It flies small propeller planes that carry 20 passengers.
(a) In order to use a binomial model in this problem, what assumptions are necessary? Are these reasonable?
(b) If the airline allows 25 passengers to book reservations for a flight, what is the probability that the flight will be oversold? Do not use the probability distribution and instead think about the mean and shape of the binomial distribution.
(c) Find the probability of overbooking. Did the rough approach taken in part (b) get close enough to the right answer?
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