Essentials of Statistics (6th Edition)
6th Edition
ISBN: 9780134685779
Author: Mario F. Triola
Publisher: PEARSON
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Chapter 5, Problem 1TP
Overbooking Flights American Airlines Flight 171 from New York’s JFK airport to LAX airport in Los Angeles uses an Airbus A321 aircraft with 189 seats available for passengers. American Airlines can overbook by accepting more reservations than there are seats available. If the flight is not overbooked, the airline loses revenue from empty seats, but if too many seats are sold, the airline loses money from the compensation it must pay to the bumped passengers. Assume that there is a 0.0995
• Find the probability that when 205 reservations are accepted for American Airlines Flight 171, there are more passengers showing up than there are seats available. Is the probability of overbooking small enough so that it does not happen very often, or does it seem too high so that changes must be made to make it lower?
• Use trial and error to find the maximum number of reservations that could be accepted so that the probability of having more passengers than seats is 0.05 or less.
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Chapter 5 Solutions
Essentials of Statistics (6th Edition)
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