Spiritual Airlines is operating a 200-seat flight from Phoen…
Spiritual Airlines is operating a 200-seat flight from Phoenix to Boston during the peak holiday season, where demand far exceeds the number of available seats. Each plane ticket is priced at $350. Due to the high demand, the airline will be able sell all 200 tickets. Historically, however, some passengers fail to show up for their flights. The airline estimates that the number of no-show passengers follows a uniform distribution between 5 and 20. Assume there are no stand-by passengers, and the airline does not refund no-show tickets. For instance, if 10 passengers do not show up, the airline will fly with 190 passengers but still receive revenue for all 200 tickets sold. What is the airline’s revenue for this flight? Hint: Do not overthink this!
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