Mathematics, 13.07.2020 20:01 jayleneeurich
An airline charges the following baggage fees: $25 for the first bag and $35 for the second. Suppose 51% of passengers have no checked luggage, 33% have one piece of checked luggage and 16% have two pieces. We suppose a negligible portion of people check more than two bags.
Required:
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 if you think they are justified.
Answers: 2
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An airline charges the following baggage fees: $25 for the first bag and $35 for the second. Suppose...
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