A US airlines has determined that 5% of its customers do not show up for their flights. If a passenger is bumped off a flight the airline pays the customer $200. What is the expected payout of the airline, if it overbooks a 240 seat airplane by 5 percent?
2 Answers
Explanation:
Overbooks by
We then need to calculate
We then need to round this to
Explanation:
Start by noting that the plane has 240 seats, and if the airline overbooked by