An airline charges the following baggage fees: $25 for the first bag and $35 for the second. suppose 54% of passengers have no checked luggage, 34% have one piece of checked luggage and 12% have two pieces. we suppose a negligible portion of people check more than two bags.
a) build a probability model, compute the average revenue per passenger, and compute the corresponding standard deviation.
b) about how much revenue should the airline expect for a flight of 120 passengers? with what standard deviation? note any assumptions you make and whether you think they are justified.