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A commuter airline overbooks all of its flights by two passengers. The no-show experience for the past 20 days is as follows: Number of No-shows

A commuter airline overbooks all of its flights by two passengers. The no-show experience for the past 20 days is as follows:

Number of No-shows

0

1

2

3

4

Frequency

6

5

4

3

2

What is the maximum implied overbooking opportunity loss if the revenue from a passenger is $250?

a.

$204. 54

b.

$583.33

c.

$1,000.

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