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The Probability of Overbooking Flights

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Please help with the following problem involving statistics and probability.

Air America is considering a new policy of booking as many as 400 persons on a airplane that can seat only 350. (Past studies have revealed that only 85% of the booked passengers actually arrive for the flight.) Estimate the probability that if Air America books 400 passengers, not enough seats will be available. Is that probability low enough to be workable, or should the policy be changed?

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Solution Summary

The following posting helps with a statistics problem involving probability. This solution determines whether the new policy will affect the probability of overbooking flights on Air America. Calculations are provided.

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Problem: Air America is considering a new policy of booking as many as 400 persons on a airplane that can seat only 350. (Past studies have revealed that only 85% of the booked passengers actually arrive for the flight.) Estimate the probability that if Air America books 400 passengers, not enough seats will be ...

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