Question

A shuttle company has a policy of overbooking because based on past research, only 90% of people who buy their tickets actually show up to ride the shuttle. Their shuttles seat 24 passengers. If they sell 25 tickets, what is the probability that there will not be enough seats for the passengers? The probability of not enough seats will be (round your answer to 3 decimal places). Interpret this answer. Which of the following statements is true? OA. The shuttle company wants this number to be big. That way they can decrease their profit and regularly inconvenience their customers. OB. The shuttle company wants this number to be big. That way they can increase their profit, but do not regularly inconvenience their customers. OC. The shuttle company wants this number to be small. That way they can increase their profit, but do not regularly inconvenience their customers. OD. The shuttle company wants this number to be small. That way they can decrease their profit and regularly inconvenience their customers.

          A shuttle company has a policy of overbooking because based on past research, only 90% of people who buy their tickets actually show up to ride the
shuttle. Their shuttles seat 24 passengers. If they sell 25 tickets, what is the probability that there will not be enough seats for the passengers?
The probability of not enough seats will be (round your answer to 3 decimal places).
Interpret this answer. Which of the following statements is true?
OA. The shuttle company wants this number to be big. That way they can decrease their profit and regularly inconvenience their customers.
OB. The shuttle company wants this number to be big. That way they can increase their profit, but do not regularly inconvenience their customers.
OC. The shuttle company wants this number to be small. That way they can increase their profit, but do not regularly inconvenience their
customers.
OD. The shuttle company wants this number to be small. That way they can decrease their profit and regularly inconvenience their customers.

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a shuttle company has a policy of overbooking because based on past research only 90 of people who buy their tickets actually show up to ride the shuttle their shuttles seat 24 passengers if 54414

Added by Jennifer M.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

Instant Answer

Solved by Expert Juan Nicolás

10/12/2021

Step 1

Since each person shows up with probability 0.9, and there are 25 tickets sold, $X$ follows a binomial distribution with $n=25$ and $p=0.9$. $X \sim Bin(25, 0.9)$ We want to find the probability that there are not enough seats, which means that more than 24 people Show more…

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A shuttle company has a policy of overbooking because based on past research, only 90% of people who buy their tickets actually show up to ride the shuttle. Their shuttles seat 24 passengers. If they sell 25 tickets, what is the probability that there will not be enough seats for the passengers? The probability of not enough seats will be (round your answer to 3 decimal places). Interpret this answer. Which of the following statements is true? OA. The shuttle company wants this number to be big. That way they can decrease their profit and regularly inconvenience their customers. OB. The shuttle company wants this number to be big. That way they can increase their profit, but do not regularly inconvenience their customers. OC. The shuttle company wants this number to be small. That way they can increase their profit, but do not regularly inconvenience their customers. OD. The shuttle company wants this number to be small. That way they can decrease their profit and regularly inconvenience their customers.

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Transcript

00:01 Hello, sultam i'm going to answer your question about probabilities and the policy of overbooking for a company.

00:07 For doing so, first i ground the parameters, so you have the probability that a passenger show is 0 .82.

00:15 Then you have that they sell 25 tickets and you want to know that they oversell.

00:22 So all the passengers appear in this case will be 25.

00:25 So this will follow a binomial distribution because you want to measure the specific amount of success.

00:32 The probability exactly, so success in this case will be measured as showing up and failure or done.

00:39 For doing so i need to apply this formula.

00:41 N will be the number of trials.

00:44 N minus x will be the difference of the number of trials and the specific amount of success that you want to measure.

00:50 P is raised to the x, the x as i explain what the specific amount of success that you want to measure, and then you multiply by 1 minus p, also known as q, and then you have to raise that to the difference between the number of trials and the number of success.

01:06 I think it's always easier to understand a formula when you start applying it.

01:10 So the number of trials or then a total amount of tickets that you sell are 25 so in this case 25 will be your number of tickets.

01:20 Then you want to check the probability that all the passengers appear in your case will be x will be 25 also because that means that every passenger appears so n minus x will be 25 minus 25 so serio factorial times 25 factorial, 0 .82 is the probability of a single success, raise 2x in your case 25 times q or 1 minus p, raise to n minus x, that would be 0.

01:46 As you may recall, 0 factorial is 1...

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