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Question 2 a Baby Jet Airline routinely overbooks its flight from Accra to Tamale. Overbooking discounted seats can be expensive because providing a bumped passenger

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Question 2 a Baby Jet Airline routinely overbooks its flight from Accra to Tamale. Overbooking discounted seats can be expensive because providing a bumped passenger with a last-minute flight on a competing carrier can cost GH450. A 120-passenger jet costs about GH60000 to operate from Accra to Tamale. The passenger ticket price is GH300. Baby Jet Airline has monitored the responses of passenger booking and has recorded the following data for forty weeks: there were five weeks that six passengers failed to report for the flight; there were ten weeks that three passengers failed to report for the flight there were ten weeks that two passengers failed to report for the flight; there were five weeks that four passengers failed to report for the flight there were three weeks that five passengers failed to report for the flight, and one passenger failed to report for a booked flight in fifteen weeks. Use the above information to answer the questions that follow. What is the total cost of overbooking the number of seats you obtained in (e)? (3 marks) What is the total gain or loss to Baby Jet Airline? (2 marks) Question 2 a Baby Jet Airline routinely overbooks its flight from Accra to Tamale. Overbooking discounted seats can be expensive because providing a bumped passenger with a last-minute flight on a competing carrier can cost GH450. A 120-passenger jet costs about GH60000 to operate from Accra to Tamale. The passenger ticket price is GH300. Baby Jet Airline has monitored the responses of passenger booking and has recorded the following data for forty weeks: there were five weeks that six passengers failed to report for the flight; there were ten weeks that three passengers failed to report for the flight there were ten weeks that two passengers failed to report for the flight; there were five weeks that four passengers failed to report for the flight there were three weeks that five passengers failed to report for the flight, and one passenger failed to report for a booked flight in fifteen weeks. Use the above information to answer the questions that follow. What is the total cost of overbooking the number of seats you obtained in (e)? (3 marks) What is the total gain or loss to Baby Jet Airline? (2 marks)

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