An airline charges the following baggage fees: $25 for the first bag and $40 for the second. Suppose 53% of passengers have no checked luggage, 32% have only one piece of checked luggage and 15% have two pieces. We suppose a negligible portion of people check more than two bags.a) The average baggage-related revenue per passenger is: $ (please round to the nearest cent)b) The standard deviation of baggage-related revenue is: $ (please round to the nearest cent)c) About how much revenue should the airline expect for a flight of 120 passengers? $ (please round to the nearest dollar)
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
An airline charges the following baggage fees: $25 for the first bag and $40 for the second. Suppose 53% of passengers have no checked luggage, 32% have only one piece of checked luggage and 15% have two pieces. We suppose a negligible portion of people check more than two bags.
a) The average baggage-related revenue per passenger is: $ (please round to the nearest cent)
b) The standard deviation of baggage-related revenue is: $ (please round to the nearest cent)
c) About how much revenue should the airline expect for a flight of 120 passengers? $ (please round to the nearest dollar)
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