Question

2.38 Baggage fees: An airline charges the following baggage fees: $25 for the first bag and $35 for the second. Suppose 52% of passengers have no checked luggage, 27% have only one piece of checked luggage and 21% 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 120 passengers? $ (please round to the nearest dollar)

Answer 1

x	f(x)	xP(x)	x2P(x)
0	0.5200	0.0000	0.0000
25	0.2700	6.7500	168.7500
60	0.2100	12.6000	756.0000
total		19.3500	924.7500
	E(x) =μ=	ΣxP(x) =	19.3500
	E(x2) =	Σx2P(x) =	924.7500
	Var(x)=σ2 =	E(x2)-(E(x))2=	550.3275
	std deviation=	σ= √σ2 =	23.4591

a)

average beggage related revenue =19.35

b)

standard deviation =23.46

c)

expected revenue =19.35*120=2322