In: Statistics and Probability
Suppose that the probability that a passenger will miss a flight is 0.0928. 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 54 passengers. (a) If 56 tickets are sold, what is the probability that 55 or 56 passengers show up for the flight resulting in an overbooked flight? (b) Suppose that 60 tickets are sold. What is the probability that a passenger will have to be "bumped"? (c) For a plane with seating capacity of 59 passengers, how many tickets may be sold to keep the probability of a passenger being "bumped" below 5%?
(a)
Probability of a passenger showing up for the flight = 1 - 0.0928 = 0.9072
Let X be the number of show up for the flight. Then X ~ Binomial(n = 56, p = 0.9072)
Probability that 55 or 56 passengers show up for the flight resulting in an overbooked flight = P(X = 55) + P(X = 56)
= 56C55 * 0.907255 * 0.09281 + 56C56 * 0.907256 * 0.09280
= 56 * 0.907255 * 0.0928 + 1 * 0.907256
= 0.02879266
(b)
If 60 tickets are sold, X ~ Binomial(n = 60, p = 0.9072)
Probability that a passenger will have to be "bumped" = P(X > 54)
= P(X = 55) + P(X = 56) + P(X = 57) + P(X = 58) + P(X = 59) + P(X = 60)
= 60C55 * 0.907255 * 0.09285 + 60C56 * 0.907256 * 0.09284 + 60C57 * 0.907257 * 0.09283 + 60C58 * 0.907258 * 0.09282 + 60C59 * 0.907259 * 0.09281 + 60C60 * 0.907260 * 0.09280
= 0.5126057
(c)
Let N be the number of tickets sold. Then X ~ Binomial(n = N, p = 0.9072)
Probability of a passenger being "bumped" < 0.05
=> P(X > 59) < 0.05
For N = 60,
P(X > 59) = P(X = 60) = 60C60 * 0.907260 * 0.09280 = 0.002898561
For N = 61,
P(X > 59) = P(X = 60) + P(X = 61) = 61C60 * 0.907260 * 0.09281 + 61C61 * 0.907261 * 0.09280 = 0.01903775
For N = 62,
P(X > 59) = P(X = 60) + P(X = 61) + P(X = 62)
= 62C60 * 0.907260 * 0.09282 + 62C61 * 0.907261 * 0.09281 + 62C62 * 0.907262 * 0.09280
= 0.06471811 which is greater than 005.
The maximum value of N = 61 for which P(X > 59) < 0.05
Thus, 61 tickets may be sold to keep the probability of a passenger being "bumped" below 5%.