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I run Delta airlines, and I'm trying to decide whether I should sell 51 (scenario A) or 50 tickets (scenario B) Each ticket sells for
I run Delta airlines, and I'm trying to decide whether I should sell 51 (scenario A) or 50 tickets (scenario B) Each ticket sells for $500 for my 50 seat plane. If I sell 51 tickets and all 51 people show up (which happens with probability 12 %) then I have to pay the 51st customer $1000 (which includes her refund). What is the expected value of selling 51 tickets MINUS the expected value of selling 50 tickets? Ignore all costs except for the overbooking penalty. Round to the nearest cent, and don't enter a dollar sign (so if your answer is $443.363, round to 443.36) or
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