March 28, 2017

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When someone buys a ticket for an airline flight there is a 0.0995 probability that the person will not show up for the flight (based on data from the IBM research paper by Lawrence, Hong, and Cherrier). An agent for Air America want to book 24 persons on an airplane that can seat only 22. If 24 persons are booked what is the probability that not enough seats will be available? Is this probability low enough so that overbooking is not a real concern?

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