How many total seats should the airline book for this


Though overbooking has some potentially severe consequences (e.g., the United Airlines passenger dragging incident), the practice is still common in the airline industry. The mean number of passengers missing a particular flight is 10 with a standard deviation of 5. Typically, the flight is fully booked with all 200 seats purchased. The average price of a ticket is $1000. However, due to cheap hotels and restaurants in the airport's region, the cost of having to rebook a passenger when overbooking happens is unusually low at only $600. How many total seats should the airline book for this flight? [Hint: remember to give the total number of seats booked including the original 200 seats.]

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Operation Management: How many total seats should the airline book for this
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