Question

Knowing that some passengers with tickets won't show up for a...

Knowing that some passengers with tickets won't show up for a flight, airlines often "overbook" their flights by selling tickets to more passengers than a plane can accommodate. On a particular route, the plane holds 20 passengers and only 80% of ticket holders show up. For flights on this route, the airline sells 24 tickets for $400 each. If more than 20 ticket holders show up, the airline compensates the overbooked ticket holders with a voucher for $1000. Assume that ticket holders show up independently of each other and that all 24 tickets are sold. The table below shows part of the probability distribution of X = revenue (dollars) based on the number of ticket holders that show up.