Air-USA has a policy of booking as many as 21 persons on anairplane that can seat only 19. (Past studies have revealed thatonly 85% of the booked passengers actually arrive for theflight.)
Find the probability that if Air-USA books 21 persons, notenough seats will be available. prob = ?
Is this probability low enough so that overbooking is not a realconcern for passengers if you define unusual as 5% or less?
yes, it is low enough not to be a concern
no, it is not low enough to not be a concern
What about defining unusual as 10% or less?
yes, it is low enough not to be a concern
no, it is not low enough to not be a concern
