Answer to Question #122761 in Statistics and Probability for Bob

Question

1. Airline companies usually sell tickets more than the number of seats they have because a certain number of
ticketed passengers will cancel at the last minute. Suppose an airplane has 300 seats, no-show rate is 7%, and
there is no penalty for cancellation. When ticket price is $1,000, and overbooked flight compensation is $1,500
per passenger, what is the optimal overbooking ratio to maximize profit? Use R program and attach the R
code with results. (30 points)

Answer 1

Dear Bob, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order