Airlines often sell more tickets on a flight than there are available seats. The
ID: 3046865 • Letter: A
Question
Airlines often sell more tickets on a flight than there are available seats. The reason is that a certain percentage of ticketed passengers don’t show up . A new airline has 180 seats with no show at 5%. Binomial distribution can describe the situation of no show versus succeeded to show passengers . The binomial distribution can be approximated with a normal distribution with mean equals to n multiplied by P and standard deviation ( square root of ( n.p .(1-p)1- If the airline sells 185 tickets what is the probability of having an overbooking situation ? 2- if the airline sells 200 tickets what is the probability of having empty seats ? 3- how many tickets shoudl the airline sells if the airline wants a 2% probability of overbooking situation ?
Airlines often sell more tickets on a flight than there are available seats. The reason is that a certain percentage of ticketed passengers don’t show up . A new airline has 180 seats with no show at 5%. Binomial distribution can describe the situation of no show versus succeeded to show passengers . The binomial distribution can be approximated with a normal distribution with mean equals to n multiplied by P and standard deviation ( square root of ( n.p .(1-p)
1- If the airline sells 185 tickets what is the probability of having an overbooking situation ? 2- if the airline sells 200 tickets what is the probability of having empty seats ? 3- how many tickets shoudl the airline sells if the airline wants a 2% probability of overbooking situation ?
1- If the airline sells 185 tickets what is the probability of having an overbooking situation ? 2- if the airline sells 200 tickets what is the probability of having empty seats ? 3- how many tickets shoudl the airline sells if the airline wants a 2% probability of overbooking situation ?
Explanation / Answer
1)
X = binom(185 ,0.95)
P(X > 180)
1-pnorm(180.5,185*0.95,sqrt(185*0.05*0.95))
[1] 0.05453767
2)
P(X<180)
X - binom(200,0.95)
pnorm(180,200*0.95,sqrt(200*0.05*0.95))
[1] 0.000588433
3)
let the number of ticket the airline sells = n
P(X > 180) = 0.02
P( Z > (180 - n * 0.95) / sqrt( n * 0.05 * 0.95)) = 0.02
P(Z > z) = 0.02
z = 2.054
hence
n = 183.097
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