Benjamin M. answered 12/05/23
#1 Statistics Expert with Hopkins MBA Here to Elevate Your Performance
Hi Anchal,
I will break down the problem step by step.
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Problem Analysis:
- Total Reservations: 17
- Total Seats: 15
- Regular Customers: 8 (these customers will definitely show up)
- Probability of Each of the Remaining Passengers Arriving: 46% or 0.46
- Remaining Passengers: Total Reservations - Regular Customers = 17 - 8 = 9
Calculations:
Probability of Overbooking:
- Overbooking occurs if more passengers show up than there are seats available.
- Since 8 regular customers will definitely show up, overbooking will occur if more than 7 of the remaining 9 passengers show up (because 8 + 7 = 15, which is the seat limit).
- We need to calculate the probability of 8 or 9 of the remaining passengers showing up.
- This is a binomial probability problem, where n=9n=9 (remaining passengers), p=0.46p=0.46 (probability of each passenger showing up).
The probability mass function (PMF) of a binomial distribution is given by:
P(X=k)=(nk)pk(1−p)n−kP(X=k)=(kn)pk(1−p)n−k
Where (nk)(kn) is the binomial coefficient, calculated as n!k!(n−k)!k!(n−k)!n!.
So, for overbooking:
P(overbooking)=P(X=8)+P(X=9)P(overbooking)=P(X=8)+P(X=9)
Probability of Empty Seats:
- Empty seats occur if fewer than 15 passengers show up.
- Since 8 regular customers will definitely show up, empty seats will occur if fewer than 7 of the remaining 9 passengers show up.
- We need to calculate the probability of 0 to 7 of the remaining passengers showing up.
So, for empty seats:
P(empty seats)=P(X=0)+P(X=1)+P(X=2)+...+P(X=7)P(empty seats)=P(X=0)+P(X=1)+P(X=2)+...+P(X=7)
Calculation of Probabilities:
Let's calculate these probabilities using the binomial PMF formula.
Probability of Overbooking:
To calculate the probability of overbooking, we sum the probabilities of exactly 8 and exactly 9 of the remaining 9 passengers showing up.
- When 8 Passengers Show Up:
- Binomial Coefficient: (98)=9!8!(9−8)!(89)=8!(9−8)!9!
- Probability: P(X=8)=(98)×0.468×0.541P(X=8)=(89)×0.468×0.541
- When 9 Passengers Show Up:
- Binomial Coefficient: (99)=9!9!(9−9)!(99)=9!(9−9)!9!
- Probability: P(X=9)=(99)×0.469×0.540P(X=9)=(99)×0.469×0.540
Summing these probabilities gives us the probability of overbooking.
Probability of Empty Seats:
To calculate the probability of empty seats, we sum the probabilities of 0 to 7 of the remaining 9 passengers showing up. We use the same binomial probability formula for each case and sum the results.
The detailed calculation for each scenario (0 to 7 passengers) involves the same binomial probability
formula, with different values of kk (number of passengers showing up).
Results:
- Probability of Overbooking: Approximately 0.0107 (or 1.07%)
- Probability of Empty Seats: Approximately 0.9893 (or 98.93%)
Hope this helps! Please let me know if you would like to discuss further.
Best regards,
Ben