An airline company is considering a new policy of booking as many as 292 persons on...

An airline company is considering a new policy of booking as many as 292 persons on an airplane that can seat only 260. (Past studies have revealed that only 85% of the booked passengers actually arrive for the flight.) Estimate the probability that if the company books 292 persons. not enough seats will be available.

Solutions

Expert Solution

Let X be the number of passengers that show up for the flight.

X ~ Binomial(292,0.85)

We need to find the probability:

P(X>260) = P(X>=261)

Using Normal approximation to the binomial:

Using accurate excel answer:

=1-BINOM.DIST(260,292,0.85,TRUE)

=0.0185558416434142

Let me know in the comments if anything is not clear. I will reply ASAP! Please do upvote if satisfied!

orchestra answered 1 year ago

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