Question: Overbooking Flights. American Airlines Flight 201 from New York's JFK airport to LAX airport in Los Angeles uses a Boeing 767-200 with 168 seats available for passengers. Because some people with reservations don't show up, American Airlines can overbook by accepting more than 168 reservations. If the flight is not overbooked, the airline will lose revenue due too many seats are sold and some passengers are denied seats, the airline loses money from the compensation that must be given to the bumped passengers. Assume that there is probability of 0.0995 that a passenger with a reservation will not show up for the flight. Also, assume that the airline accepts 182 reservations for the 168 seats that are available.

1. Find the probability that when 182 reservations are accepted for American Airlines Flight 201, there are more passengers showing up than there are seats available.
2. Is the probability of overbooking small enough so that it does not happen very often, or does it seem too high so that changes must be made to make it lower?
3. Find the maximum number of reservations that could be accepted so that the probability of having more passengers t an seats is 0.05 or less.

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