An airline knows that over the long run, 90% of passengers who reserve seats for a flight show up. On a particular flight with 300 seats, the airline sold 324 reservations.
- Assuming that passengers show up independently of each other, what is the chance that the flight will be overbooked ?
- Suppose that people tend to travel in groups. Would that increase of decrease the probability of overbooking ? Explain your answer.
- Redo theĀ the calculation in the first question assuming that passengers always travel in pairs. Are your answers to all three questions consistent ?
[Pitman p. 109, #9]