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Airlines often overbook flights in order to avoid flying with empty seats. The n

ID: 3244388 • Letter: A

Question

Airlines often overbook flights in order to avoid flying with empty seats. The no-show rate of a particular flight depends on a number of factors. Suppose a particular airline uses only planes with a 190 seats. The overall no-show rate for this airline is 13%, meaning 13% of passengers ticketed for a flight do not attempt to board. Suppose the airline sells 227 tickets for a particular flight. If more than 190 ticketed passengers show up, then some passengers will be denied boarding. Assume that the airline’s passengers all behave independently.

Explanation / Answer

Solution:-

Probability that some passengers would be denied boarding is 0.9132.

Probability of passengers being showing up = 1 - 0.13 = 0.87

p = 0.87, n = 227

x = 190

By applying binomial distribution:-

P(x, n, p) = nCx*px *(1 - p)(n - x)

P(x > 190) = 0.9132

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