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ControlNext week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from history

ControlNext week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from history that an average of 20 customers (with a standard deviation of 10) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $100. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $210. Super Discount considers the cost of flying the plane from New York to Los Angeles a sunk cost

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