An Airline Experiences a No-Show Rate of 6

question 205

Multiple Choice

An airline experiences a no-show rate of 6%. What is the maximum number of reservations that it could accept for a flight with a capacity of 160, if it wants the probability of accommodating all reservation holders to be at least 95%?

• A) 167
• B) 165
• C) 164
• D) 166

---

Definitions:

Predicted Y

In statistical modeling, Predicted Y represents the value forecasted by a regression model when specific values are inputted for the model's predictors.

Residuals

Residuals are the differences between observed values and the expected values predicted by a model, representing unexplained variance.

Subtract

The mathematical process of deducting one number from another.

Correlated

Implies a statistical relationship where two variables move together in some predictable pattern.