An airline serving Denver's International Airport and Steamboat Springs, Colorado, is considering overbooking its flights to avoid flying with empty seats. For example, the ticket agent is thinking of taking seven reservations for an airplane that has only six seats. During the past month, the no-show experience has been: The operating costs associated with each flight are pilot, $150; first officer, $100; fuel, $30; and landing fee, $20. What would be your recommendation for overbooking if a one-way ticket sells for $80 and the cost of not honoring a reservation is a free lift ticket worth $50 plus a seat on the next flight? What is the expected profit per flight for your overbooking choice? Reconsider Example 11.5 (Blackjack Airline). After initial success with the Los Angeles-to-Las Vegas route, Blackjack Airline's demand for full-fare tickets has increased to an average of 75, with the standard deviation remaining at 15 . Consequently, Blackjack has decided to raise all ticket prices by $10. Under these new conditions, how many full-fare seats should Blackjack reserve