An airline is deciding how many reservations to accept for


An airline is deciding how many reservations to accept for a new flight from Indianapolis to Chicago. The plane has a capacity of 200 seats.  Because only 90 percent of passengers typically show up for this flight, they need to determine how many tickets to sell.  The plane has 200 seats available.  An empty seat costs the airline $200 per seat.  However, if more than 200 passengers show up, those passengers will have to be rebooked on other flights. The cost of rebooking is about $300 per passenger.  How many tickets should the airline sell for this flight to minimize their costs?

 

 

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