Air-USA has a policy of booking as many as 17 persons on an airplane that can seat only 15. (Past studies have revealed that only 83% of the booked passengers actually arrive for the flight.)
Find the probability that if Air-USA books 17 persons, not enough seats will be available.
prob = _______
Is this probability low enough so that overbooking is not a real concern 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