Question
AC Brun's new service will soon offer daily departures from Ottawa to Paris. The plane's capacity will be 310 seats, all priced at $725, and
AC Brun's new service will soon offer daily departures from Ottawa to Paris. The plane's capacity will be 310 seats, all priced at $725, and all fully refundable if the ticket is not used.
For these flights, AC Brun estimates that all seats will be sold, but that the number of passengers who do not show up for their flight will follow a discrete uniform distribution between 1 and 20 inclusive, ie. the probability that 1 passenger will not show up equals the probability that 2 passengers will not show up equals the probability that 3 passengers will not show up and so on up to 20. The probability that more than 20 passengers will not show up will not present is zero.
To mitigate this risk, AC Brun will over-sell: it will sell more tickets than the capacity of the plane. However, it will have to compensate each passenger with a ticket who is denied boarding because the plane is full. This compensation will amount to $210. In addition, the company will have to provide a ticket from a competing company to the refused passenger, which will be equivalent to the price of the ticket.
Use the camelot model to estimate how many AC Brun tickets should be oversold per Ottawa-Paris flight. Round the final result to zero decimal places.
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