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Assume that 96% of ticket holders show up for an airline flight. If a plane seats 200 people, how
many tickets should be sold to make the chance of an overbooked flight (more ticket holders
show up for a flight than there are seats available) is at most 10%.
Solution
Say no. of tickets booked = x
Now only 0.96x will turn up
No. of seats = 200
Now these 0.96x people should get a seat with 90% probability
200 / (0.96x) >=0.9
200/0.864 >= x
x <=231.48
x = 231
Airline will make 231 reservations

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