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QUESTION

Musquodoboit World Airways operates a fleet of small passenger planes.

Musquodoboit World Airways operates a fleet of small passenger planes. Like most major airlines it has a problem with no-shows, people who make reservations, but don't show up for their flight or cancel at the last minute. Their no-show rate is 20%, comparable to the industry average. One type of aircraft used by MWA can accommodate up to 14 passengers. How many reservations should they accept if they don't want to bump passengers (make them take a different flight because the plane is full) more than 10% of the time?

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