Binomial probability or poisson?

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SUMMARY

The discussion centers on determining the appropriate number of reservations an airline should book for a flight with 224 seats, given a no-show rate of 0.09. The objective is to ensure that the probability of not having enough seats for booked passengers is at most 5%. The consensus is that this scenario can be modeled using a binomial distribution, where the probability condition is expressed mathematically as a summation involving binomial coefficients and the adjusted probability of attendance (p = 0.91).

PREREQUISITES
  • Understanding of binomial distribution and its properties
  • Familiarity with binomial coefficients and their calculations
  • Knowledge of probability theory, specifically in relation to no-show rates
  • Ability to perform calculations involving summations and inequalities
NEXT STEPS
  • Study binomial distribution applications in real-world scenarios
  • Learn how to calculate binomial coefficients using the formula $\binom{n}{k}$
  • Explore the concept of probability thresholds in statistical modeling
  • Investigate the implications of no-show rates in airline revenue management
USEFUL FOR

Statisticians, airline revenue managers, and operations researchers looking to optimize booking strategies based on passenger behavior and probability theory.

Tbx013
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This the only question I'm having issues with. It may be a binomial distribution or poissm, not really sure.

If an airplane has 224 seats and the no show rate of passengers with reservations is .09 how many reservations should the airline book such that the probability of not enough seats for booked passengers showed up is AT MOST 5%.
 
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Tbx013 said:
This the only question I'm having issues with. It may be a binomial distribution or poissm, not really sure.

If an airplane has 224 seats and the no show rate of passengers with reservations is .09 how many reservations should the airline book such that the probability of not enough seats for booked passengers showed up is AT MOST 5%.

Wellcome on MHB Tbx013!...

I think that this is a typical example of a binomial distribution. What you have to do is find an oversupply of seats m so that the probability of having a passenger that no place is no more than .05. In practice you have to find the maximum value of m for which the following condition is satisfied ...

$\displaystyle \sum_{k=1}^{m} \binom {224+ k}{224 + m} p^{224+ k}\ (1-p)^{224 + m - k} < .05,\ p= 1-.09= .91$

Kind regards

$\chi$ $\sigma$
 
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