On a flight, there are 180 seats and each seat is sold on average for $250. The airline implements overbooking to ensure each flight reaches close to a 100% occupancy rate.

The airline is considering implementing one of three service denial rates: 1.) service denial rate: $100 mean: 25 standard deviation: 10

2.) service denial rate: $200 mean: 21 standard deviation: 10

3.) service denial rate: $300 mean: 18 standard deviation: 10

Assume the distribution of no-shows for each service denial rate is normal.

Determine the following for each service denial rate:

1.) Optimal overbooks (seats) 2.) % of times passengers with reservation will be denied a seat 3.) Expected number of passengers with a confirmed reservation who will be denied a seat 4.) Expected loss, in dollars, from denying a seat to passengers with a confirmed reservation 5.) Expected number of empty seats 6.) Expected loss, in dollars, from empty seats