answer the binomial distribution problem (part c) **Using Binomial Distribution to Determine Overbooking Strategy**For a particular flight, the aircraft has a seating capacity of 72. The airline's historical records indicate that for this flight, only 90% of ticket holders actually show up to board. Assuming this trend continues, the airline decides to sell extra tickets, hoping that no more than 72 passengers will arrive. The number of passengers arriving to board this flight can be modeled using a binomial distribution with a success probability of 0.9. Each ticket is sold for $150. In cases where too many passengers arrive, the airline compensates each passenger who cannot board with $300.**Objective:**Using binomial distribution, determine the maximum number of tickets that can be sold such that the expected number of passengers who show up to board does not exceed 72.**Key Concepts:**1. **Seating Capacity:** 72 seats.2. **Show-Up Rate:** 90% (0.9 probability).3. **Ticket Price:** $150.4. **Compensation for Overbooking:** $300 per passenger.**Problem Statement:**Find the maximum number of tickets that the airline should sell to ensure that the expected number of boarding passengers does not exceed 72.By using the binomial distribution properties, one can calculate the expected number of arrivals and set an appropriate overbooking limit while mitigating financial risk to the airline.---Through this analysis, students will get a practical application of the binomial distribution to real-life scenarios involving probabilities in decision-making and potential financial implications.

Answered: Find the maximum number of tickets that…

Find the maximum number of tickets that could be sold if the expected number of passengers who arrive to board the flight must be less than or equal to 72.

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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Question

answer the binomial distribution problem (part c)

**Using Binomial Distribution to Determine Overbooking Strategy**

For a particular flight, the aircraft has a seating capacity of 72. The airline's historical records indicate that for this flight, only 90% of ticket holders actually show up to board. Assuming this trend continues, the airline decides to sell extra tickets, hoping that no more than 72 passengers will arrive.

The number of passengers arriving to board this flight can be modeled using a binomial distribution with a success probability of 0.9. Each ticket is sold for $150. In cases where too many passengers arrive, the airline compensates each passenger who cannot board with $300.

**Objective:**
Using binomial distribution, determine the maximum number of tickets that can be sold such that the expected number of passengers who show up to board does not exceed 72.

**Key Concepts:**
1. **Seating Capacity:** 72 seats.
2. **Show-Up Rate:** 90% (0.9 probability).
3. **Ticket Price:** $150.
4. **Compensation for Overbooking:** $300 per passenger.

**Problem Statement:**
Find the maximum number of tickets that the airline should sell to ensure that the expected number of boarding passengers does not exceed 72.

By using the binomial distribution properties, one can calculate the expected number of arrivals and set an appropriate overbooking limit while mitigating financial risk to the airline.

---

Through this analysis, students will get a practical application of the binomial distribution to real-life scenarios involving probabilities in decision-making and potential financial implications.

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