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2.7-11. An airline always overbooks if possible. A partic- ular plane has 95 seats on a flight in which a ticket sells for $300. The airline sells 100 such tickets for this flight. (a) If the probability of an individual not showing up is 0.05, assuming independence, what is the probability that the airline can accommodate all the passengers who do show up? (b) If the airline must return the $300 price plus a penalty of $400 to each passenger that cannot get on the flight, what is the expected payout (penalty plus ticket refund) that the airline will pay?

2.7-11. An airline always overbooks if possible. A partic- ular plane has 95 seats on a flight in which a ticket sells for $300. The airline sells 100 such tickets for this flight. (a) If the probability of an individual not showing up is 0.05, assuming independence, what is the probability that the airline can accommodate all the passengers who do show up? (b) If the airline must return the $300 price plus a penalty of $400 to each passenger that cannot get on the flight, what is the expected payout (penalty plus ticket refund) that the airline will pay?

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Need help with this Intro to probability and statistics homework problem. Below the homework problem is the answers from the textbook. Make sure your handwriting is neat and readable.

 

2.7-11 (a) 0.564 using binomial, 0.560 using Poisson approx- imation: (b) $598.56 using binomial, $613.90 using Poisson approximation (Table III). $614.14 using Poisson approximation and com- puter calculated probability.
Transcribed Image Text:2.7-11 (a) 0.564 using binomial, 0.560 using Poisson approx- imation: (b) $598.56 using binomial, $613.90 using Poisson approximation (Table III). $614.14 using Poisson approximation and com- puter calculated probability.
2.7-11. An airline always overbooks if possible. A partic- ular plane has 95 seats on a flight in which a ticket sells for $300. The airline sells 100 such tickets for this flight. (a) If the probability of an individual not showing up is 0.05, assuming independence, what is the probability that the airline can accommodate all the passengers who do show up? (b) If the airline must return the $300 price plus a penalty of $400 to each passenger that cannot get on the flight, what is the expected payout (penalty plus ticket refund) that the airline will pay?
Transcribed Image Text:2.7-11. An airline always overbooks if possible. A partic- ular plane has 95 seats on a flight in which a ticket sells for $300. The airline sells 100 such tickets for this flight. (a) If the probability of an individual not showing up is 0.05, assuming independence, what is the probability that the airline can accommodate all the passengers who do show up? (b) If the airline must return the $300 price plus a penalty of $400 to each passenger that cannot get on the flight, what is the expected payout (penalty plus ticket refund) that the airline will pay?
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A plane has 95 seats on a flight in which a ticket sells for $300.

The airline sells 100 such tickets for this flight.

 

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