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ch 11 Next week, Super Discount Airlines has a filght from New York to Los Angeles that will be booked to capacity. The airline knows
ch 11
Next week, Super Discount Airlines has a filght from New York to Los Angeles that will be booked to capacity. The airline knows from history that an average of 35 customers (with a standard deviation of 24 ) cancel their reservation or do not show for the fight. Revenue from a ticket on the flight is $134. If the flight is overbooked, the aitline has a policy of getting the customer on the next avallable fight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $263. Super Discount considers the cost of flying the plane from. New York to Los Angeles a sunk cost. By how many seats should Super Discount overbook the flight? Note: Use Excel's NORM.S.INVQ function to find the z value. Round z value to 2 decimal places. Round your answer to the nearest whole number Step by Step Solution
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