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Because many passengers who make reservations do not show up, airlines often overbook flights (sell more tick- ets than there are seats). A Boeing 767-400ER holds 245 passengers. If the airline believes the rate of passenger no shows is 5% and sells 255 tickets, is it likely they will not have enough seats and someone will get bumped?

a) Use the Normal model to approximate the Binomial to determine the probability of at least 246 passengers showing up.

b) Should the airline change the number of tickets they sell for this flight? Explain.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91724376

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