An airline charges the following baggage fees: $25 for the rst bag and $35 for the second.

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An airline charges the following baggage fees: $25 for the rst bag and $35 for the second. Suppose 54% of passengers have no checked luggage, 34% have one piece of checked luggage and 12% have two pieces. We suppose a negligible portion of people check more than two bags.

(a) Build a probability model, compute the average revenue per passenger, and compute the corresponding standard deviation.

(b) About how much revenue should the airline expect for a ight of 120 passengers? With what standard deviation? Note any assumptions you make and if you think they are justified.

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OpenIntro Statistics

ISBN: 9781943450077

4th Edition

Authors: David Diez, Mine Çetinkaya-Rundel, Christopher Barr

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