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United flight 15 from New York's JFK to San Francisc o uses a Boeing 757 - 200 with 180 seats. Because some people with tickets

United flight 15 from New York's JFK to San Francisc

o uses a Boeing 757

-

200 with

180

seats. Because some

people with

tickets

don't show up, United

will

overbook by

selling more than 180

tickets

. If the flight is not

overbooked, the airline will lose revenue due to empty seats, but if too many

tickets

are sold and some

passengers are denied seats, the airline loses money from the compensation that must be given to bumped

passengers.

Assume that t

here is a 0.

90

5 probability that a passenger with a

ticket

will show up for the

flight. Also assume that

the

airline

sells

200

tickets for the 180

seats that are available.

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