SOLUTION: 2.38 Baggage fees: An airline charges the following baggage fees: $25 for the first bag and $30 for the second. Suppose 53% of passengers have no checked luggage, 29% have only on

Question 1158362: 2.38 Baggage fees: An airline charges the following baggage fees: $25 for the first bag and $30 for the second. Suppose 53% of passengers have no checked luggage, 29% have only one piece of checked luggage and 18% 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 130 passengers? $ (please round to the nearest dollar)
Answer by KMST(5380) (Show Source): You can put this solution on YOUR website!
53%+29%+18%=100%, so the portion of people who check more than two bags must have been indeed negligible.
The passenger who check two bags pay $25+$30=$55

a) The average baggage-related revenue per passenger (rounded to the nearest cent):
The fractions of people who check 0, 1, and 2 bags are 0.53, 0.29, and 0.18 respectively, and add to 1.00,
so the averaged revenue per passenger is the weighted average

b) The standard deviation of baggage-related revenue (per passenger, in $, rounded to the nearest cent):
The standard deviation (in $) of baggage-related revenue per passenger can be calculated from the individuals deviations (in $) from the average:
for 53% of the passengers,
for 29%, and
for 18% of the passengers.
(in $, rounded to the nearest cent)

c) Revenue the airline should expect for a flight of 130 passengers (in $, rounded to the nearest dollar)
(in $, rounded to whole dollars).

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