Hey guys, here's a question that is confusing me:
An airline knows that some people who make reservations do not show for their flight. So, for example, it sells 52 seats for a 50 seat flight. If, on average, 4% of those who make reservations are no-shows, and we assume independence for the n=52 trials,
(a) for what proportion of flights overbooked this way will there not be enought seats?
(b) why is the assumption of independence not realistic?
(c) why is the proportion of all 50 seat flights not having enought seats les than the proportion computed in part (a)?