Question

The Undesirable Air Lines (UAL???) is notorious for its cost-cutting substandard customer service. Consequently, only 85% of the ticket holders will show up for a flight. The Air Lines workhorse, the Boring 878, has 234 seats. UAL, of course, will make extra money by overbooking. However, they have to worry about the FAA fines, and they have to keep a safety margin, say, that there is at least 95% probability that they can accommodate all those who show up for the Boring 878 flight. How many seats can they actually sell in this case?

Answer 1

Answea Hege, thee ae 3H seats Thus ue need the Numbao of tickets such that T5e Psobabilit et at mot 334 tidets is at Leoust q5 a Noamal arproximation, i n z 1e wumba us1 p O.86 ct tickets to Sell mean (u P 0-85 n saat (n P- standaad Oeuiation (s) : O. 3530 2J sVat(n) foo a 95 Left tailed aaea, TRe ctiol AS 2 scoae is. bable Technole 64u85362 2crit AS X u 2crit s 0. 35 907 142| saat) 0.85 nt.644853627 Then a34= 234 0.85 n +0.5873 30822 saatn O.65 n 0.Ss8733022 Saat(n) - 23u - O Solvitoa saat() by auadrakic equodion. Saat 16.25009779 TBug 264.065678a Thuy, t5y Could sell 264 seats