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Overbooking at Air Canada The cost of denying a seat to the customer with a confirmed reservation is $ 3 5 0 in ill -

Overbooking at Air Canada
The cost of denying a seat to the customer with a confirmed reservation is $350 in ill-will (loss of goodwill) and penalties.
Average revenue from a filled seat is $159.
Average number of no shows per flight is 8.5
How many seat should be overbooked (sold in excess of capacity)?
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