the train company knows from experience that 2% of ticket buyers do not arrive on the train. The company sells 82 tickets to a train even though there are only 80 seats. What is the expected value?

Question

the train company knows from experience that 2% of ticket buyers do not arrive on the train. The company sells 82 tickets to a train even though there are only 80 seats. What is the expected value?

Answer 1

If 2% of ticket buyers do not arrive at the train, this is the same as saying 98% of ticket buyers will arrive at the train.

So if we want to know how many ticket buyers are expected to show up, it is 98% of 82.

(0.98) x (82) = 80.36

So the expected value of the number of people you expect to show up at the train is slightly more than the number of seats available.