Question

Suppose that an airline overbooks seats on their flights. In particular, it sells 300 tickets for a flight when there are only 270 seats available. On average, we expect 15% of those with tickets to not show up. What is the probability that we will have enough seats for everyone who shows up

Answer 1

Using the normal approximation to the binomial, it is found that there is a 0.994 = 99.4% probability that we will have enough seats for everyone who shows up.

In a normal distribution with mean $\mu$ and standard deviation $\sigma$, the z-score of a measure X is given by:

$Z = \frac{X - \mu}{\sigma}$

• It measures how many standard deviations the measure is from the mean.  
• After finding the z-score, we look at the z-score table and find the p-value associated with this z-score, which is the percentile of X.
• The binomial distribution is the probability of x successes on n trials, with p probability of a success on each trial. It can be approximated to the normal distribution with $\mu = np, \sigma = \sqrt{np(1-p)}$.

In this problem:

• 15% do not show up, so 100 - 15 = 85% show up, which means that $p = 0.85$.
• 300 tickets are sold, hence $n = 300$.

The mean and the standard deviation are given by:

$\mu = np = 300(0.85) = 255$

$\sigma = \sqrt{np(1-p)} = \sqrt{300(0.85)(0.15)} = 6.185$

The probability that we will have enough seats for everyone who shows up is the probability of at most 270 people showing up, which, using continuity correction, is $P(X \leq 270 + 0.5) = P(X \leq 270.5)$, which is the p-value of Z when X = 270.5.

$Z = \frac{X - \mu}{\sigma}$

$Z = \frac{270.5 - 255}{6.185}$

$Z = 2.51$

$Z = 2.51$ has a p-value of 0.994.

0.994 = 99.4% probability that we will have enough seats for everyone who shows up.

A similar problem is given at https://brainly.com/question/24261244