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(5 marks] A tour bus can hold 20 tourists. Tickets oosts $15 and are non-refundable. From previous experience, the tour operator estimates there is a
(5 marks] A tour bus can hold 20 tourists. Tickets oosts $15 and are non-refundable. From previous experience, the tour operator estimates there is a 1096 chance of a no-show, independent of other ticket purchasers. The tour operator justifies that if there is a 1096 (2 in 20) chance of a no show, he should expec that put of 20 tickets sold, 2 will not show up. In which case, the tour operator decides to sell 22 tickets. If. tourist shows up and the bus Is full, the tour operator will refund their 525 for the ticket and give them another 5150 as compensation. if the tour operator sells 22 tickets for a tour, what is their expected revenue? is selling the extra ticket worth it
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