In: Statistics and Probability
Suppose that the probability that a passenger will miss a flight is
0.0925
Airlines do not like flights with empty seats, but it is also not desirable to have overbooked flights because passengers must be "bumped" from the flight. Suppose that an airplane has a seating capacity of
59
passengers.
(a) If
61
tickets are sold, what is the probability that
60
or
61
passengers show up for the flight resulting in an overbooked flight?
(b) Suppose that
65
tickets are sold. What is the probability that a passenger will have to be "bumped"?
(c) For a plane with seating capacity of
61
passengers, how many tickets may be sold to keep the probability of a passenger being "bumped" below
55%?
Here we have given that the probability that a passenger will miss a fight is 0.0925.
The probability that the passengers will show up for the flight is
P(show) = 1 – 0.0925 = 0.9075
P(60 or 61 show) = P(60 show) + P(61 show)
Here n = 61, P(show) = 0.9075 x = 60 or 61
P(60 show) = 61C60 (0.9075)60 (0.0925)1 = 0.0167…….. using excel function (=binom.dist) function
P(61 show) = 61C61 (0.9075)61 (0.0925)0 = 0.0027
P(60 or 61 show) = 0.0167 + 0.0027 = 0.0194
Probability that 60 or 61 passengers show up for the flight resulting an overbooked flight is 0.0194.
We want to find the probability of a passenger will have to be bumped.
Here n = 65, x = 59, p = 0.9075
P(bump) = P( more than 59 passengers) = 65C59 (0.9075)59 (0.0925)6 = 0.4358
Suppose 65 tickets are sold. The probability that a passenger will have to be "bumped" is 0.4358.
Let consider the number of tickets n = 62, P( more than 61 show up) = 62C61 (0.9075)62 (0.0925)1 = 0.0024
Suppose n = 63, P( more than 61 show up) = 63C61 (0.9075)63 (0.0925)2 = 0.0164
Suppose n = 64, P( more than 64 show up) = 64C61 (0.9075)64 (0.0925)3 = 0.0571
Here if 64 tickets sold out then the probability of passengers of being “bumped” is above 5%
Therefore, for a plane with seating capacity of 61 passengers, 63 tickets may be sold to keep the probability of passenger of being “bumped” below 5%.