Airline Bumps To counter the cost of passenger no-shows, airlines frequently overbook

Chapter 8, Problem 54

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Airline Bumps To counter the cost of passenger no-shows, airlines frequently overbook flights. If the number of passengers that show up for a flight is greater than the number of seats available, then some passengers must be bumped from that flight (usually voluntarily through incentives). A USA Today analysis of government statistics showed that airlines bump about 12 of every 10,000 passengers. Suppose a shuttle from an airport parking lot is carrying 18 independent air passengers. (a) Determine the probability that none of them will be bumped from their flight. (b) Determine the probability that exactly one of them will be bumped from their flight. (c) Determine the probability that more than one of them will be bumped from their flights. Source: De Lollis, Barbara, Airlines give fliers fewer chances to do the bump, USA Today, Dec. 19, 2005 (www.usatoday.com)