A common practice of airline companies is to sell more tickets for a particular flight than there are seats on the plane, becau
se customers who buy tickets do not always show up for the flight. Suppose that the percentage of no-shows at flight time is 4%. For a particular flight with 148 seats, a total of 150 tickets were sold. What is the probability that the airline overbooked this flight?
Given that a common practice of airline companies is to sell more tickets for a particular flight than there are seats on the plane, because customers who buy tickets do not always show up for the flight.
Here if X is the no of persons that do not show up, then X is binomial as each trial is independent with p = 0.04 and n =150 (no of tickets sold)
The plane is overbooked if more than 150 show up
i.e. less than 2 do not show up
Hence the probability that the airline overbooked this flight