How much on average expected profit will the flight generate

Reference no: EM13190188

An airline sells 120 tickets for a flight that seats 100. Each ticket is non-refundable and costs $200. The unit cost of flying is $80 / ticket. If flight is overbooked each person who does not find a seat is given $300. Assume it is equally likely that any number of people between 91-120 show up for the flight. How much , on average expected profit will the flight generate?

Reference no: EM13190188

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