Question

On any given flight, an airline's goal is to fill the plane as much as possible, without overbooking. if, on average, 10% of customers cancel their tickets, all independently of each other, what is the probability that a particular flight will be overbooked if the airline sells 320 tickets, for a plane that has maximum capacity 300 people? what is the probability that a plane with maximum capacity 150 people will be overbooked if the airline sells 160 tickets?

Answer 1

a) p(x≥301) ≈ 0.00683

b) p(x≥151) ≈ 0.03590