this is a popular route with strong demand at its current price point. the airline estimates demand to follow a poisson distribution with an average rate at 25. the airline has estimated that the cost of an empty seat is $90 and the cost of a bumped passenger is $150. our goal is to find the optimal number of seats the airline should book using simulation. consider overbooking as many as 7 seats (that is, booking as many as 27 seats in this 20-seat flight.).
