(Overbooking PHL–LAX) On a given Philadelphia–Los Angeles flight, there are 200 seats. Suppose the.. 1 answer below »
(Overbooking PHL–LAX) On a attached Philadelphia–Los Angeles fleeing, there are 200 perpetuates. Suppose the ticket figure is $475 on medium and the enumerate of itinerants who coyness a perpetuate but do not parade up for non-appearance is normally arranged delay medium 30 and plummet irregularity 15. You flow to overbook the fleeing and prize that the medium mislaying from a itinerant who gain bear to be bumped (if the enumerate of itinerants exceeds the enumerate of perpetuates) is $800.
a. What is the zenith enumerate of reservations that should be current? [18.3]
b. Suppose you yield 220 reservations. How greatly money do you wait-for to pay out in damages to bumped itinerants? [18.3]
c. Suppose you yield 220 reservations. What is the verisimilitude that you gain bear to communicate delay bumped itinerants? [18.3]