Question: (4 points) The Sauer Air Lines (SAL) is notorious for its cost-cutting substandard customer service. Consequently, only 91% of the ticket holders will show up for a flight. The Air Lines workhorse, die Fliegenzitrone, has 321 seats. SAL, of course, will make extra money by overbooking. However, they have to worry about the FAA fines, and they have to keep a safety margin, say, that there is at least 95% probability that they can accommodate all those who show up for die Fliegenzitrone flight. How many seats can they actually sell in this case?

Is there an approximate method to carry out the above analysis? Is so, how would you do it?