Business
Business, 06.11.2019 23:31, andrewjarrah05

Next week, super discount airlines has a flight from new york to los angeles that will be booked to capacity. the airline knows from past history that an average of 38 customers (with a standard deviation of 25) cancel their reservation or do not show for the flight. revenue from a ticket on the flight is $137. if the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. the cost of this free round-trip ticket averages $265. super discount considers the cost of flying the plane from new york to los angeles a sunk cost. by how many seats should super discount boo kthe flight?

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