2.38 Baggage fees: An airline charges the following baggage fees: $20 for the fi

Question

2.38 Baggage fees: An airline charges the following baggage fees: $20 for the first bag and $35 for the second. Suppose 49% of passengers have no checked luggage, 33% have only one piece of checked luggage and 18% have two pieces. We suppose a negligible portion of people check more than two bags.


a) The average baggage-related revenue per passenger is: $  (please round to the nearest cent)
b) The standard deviation of baggage-related revenue is: $  (please round to the nearest cent)
c) About how much revenue should the airline expect for a flight of 100 passengers? $ (please round to the nearest dollar)

Explanation / Answer

a) average revenue = =x*p(x)

                             =0*0.49 + 20*0.33 +35*0.18

                             =0 +6.6 + 6.3

                             =12.9

b) variance =^2 = x^2p(x) - ^2

                             =0^2*0.49 + 20^2*0.33 +35^2*0.18 -12.9^2

                             =0 +132 +220.5 -166.41

                             =186.09

=sqrt(186.09)

=13.64

c) Amount of revenue =n* =100*12.9 =1290

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