11.3. A commuter airline overbooks all its flights by one passenger (i.e., the ticket agent will take

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11.3. A commuter airline overbooks all its flights by one passenger (i.e., the ticket agent will take seven reservations for an airplane that only has six seats). The no-show experience for the past 20 days is shown below:

No-shows 0 1 2 3 4 Frequency 6 5 4 3 2 Using the critical fractile P(d  x) Cu/(Cu  Co), find the maximum implied overbooking opportunity loss Co if the revenue Cu from a passenger is $20.

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