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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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