NO EXCEL PLEASE Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capa
Posted: Mon May 02, 2022 9:59 am
NO EXCEL PLEASE
Next week, Super Discount Airlines has a flight from New York to
Los Angeles that will be booked to capacity. The airline knows from
past history that the number of cancellations/no-shows is uniformly
distributed between 10 and 20. Revenue from a ticket on the flight
is $125. If the flight is overbooked, the net cost for the airlines
to ``bump’’ the customer to a different flight is $250. By how many
seats should Super Discount overbook the flight?
Next week, Super Discount Airlines has a flight from New York to
Los Angeles that will be booked to capacity. The airline knows from
past history that the number of cancellations/no-shows is uniformly
distributed between 10 and 20. Revenue from a ticket on the flight
is $125. If the flight is overbooked, the net cost for the airlines
to ``bump’’ the customer to a different flight is $250. By how many
seats should Super Discount overbook the flight?