# 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

#### Answer:

#### Explanation:

Overbooks by

We then need to calculate

We then need to round this to

#### Answer:

#### Explanation:

Start by noting that the plane has 240 seats, and if the airline overbooked by