What is the probability that the flight will be overbooked

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Question: Airline overbooking. An airline known that over the long run 90% of passengers who reserve seats show up for their flight. On a particular flight with 300 seats, the airline accepts 324 reservations

a) Assuming that passengers show up independently of each other, what is the chance that the flight will be overbooked?

b) Suppose that people tend to travel in groups. Would that increase or decrease the probability of overbooking? explain your answer.

c) Redo the calculation a) assuring that passengers always travel in pairs, Check that your answer to a) b), and c) are consistent.

Reference no: EM131809875

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