A ticket from Indianapolis to Orlando on Deleast Airlines sells for $150. The plane can hold 100 people. It costs $8,000 to fly an empty plane. The airline incurs variable costs of $30 (food and fuel)...

A ticket from Indianapolis to Orlando on Deleast Airlines sells for $150. The plane can hold 100 people. It costs $8,000 to fly an empty plane. The airline incurs variable costs of $30 (food and fuel) for each person on the plane. If the flight is overbooked, anyone who cannot get a seat receives $300 in compensation. On the average, 95% of all people who have a reservation show up for the flight. To maximize expected profit, how many reservations for the flight should be taken by Deleast? (Hint: The @Risk function RISKBINOMIAL can be used to simulate the number of passengers who show up. If the number of reservations taken is in cell A2, then the formula

= RISKBINOMIAL(A2,.95)

will generate the number of customers who actually show up for a flight!)