Chapter 12, Problem 82E

No-shows An airline offers discounted “advance-purchase” fares to customers who buy tickets more than 30 days before travel and charges “regular” fares for tickets purchased during those last 30 days. The company has noticed that 60% of its customers take advantage of the advance-purchase fares. The “no-show” rate among people who paid regular fares is 30%, but only 5% of customers with advance-purchase tickets are no-shows.

1. a) What percent of all ticket holders are no-shows?
2. b) What’s the probability that a customer who didn’t show had an advance-purchase ticket?
3. c) Is being a no-show independent of the type of ticket a passenger holds? Explain.