Assume that 96 of ticket holders show up for an airline flig

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