Airline Overbooking

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.

  1. Assuming that passengers show up independently of each other, what is the chance that the flight will be overbooked ?
  2. Suppose that people tend to travel in groups. Would that increase of decrease the probability of overbooking ? Explain your answer.
  3. Redo the  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]

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