Assignment:
Co-Cost of over booking (Cumulative P (n< x) x ZMW 1500)
Caiculate the following:
(i) Expected number of no shows
(ii )The optimal probability of no- shows
(iii) Total cost of overbooking by Two (2) seats (Cost of bumping customers Loss of sales from no shows)
(iv) Expected savings a Flight and what would be your comment to the Airline so they can improve on revenue performance?