Air-USA has a policy of booking as many as 22 persons on an airplane that can seat only 20. (Past studies
have revealed that only 84% of the booked passengers actually arrive for the flight.)
Find the probability that if Air-USA books 22 persons, not enough seats will be available.
prob =
Is this probability low enough so that overbooking is not a real concern for passengers if you define unusual
as 5% or less?
Oyes, it is low enough not to be a concern
Ono, it is not low enough to not be a concern
What about defining unusual as 10% or less?
O no, it is not low enough to not be a concern
Oyes, it is low enough not to be a concern