SOLUTION: An airline charges the following baggage fees: $25 for the first bag and an extra $35 for the second. Suppose 54% of passengers have no checked luggage, 34% have only one piece of

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Question 1147995: An airline charges the following baggage fees: $25 for the first bag and an extra $35 for the second. Suppose 54% of passengers have no checked luggage, 34% have only one piece of checked luggage and 12% 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): $
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
airline charges the following:
25 dollars for the first bag.
additional 35 dollars for the second bag.

54% of passengers have no bags.
34% of passengers have one bag.
12% of passengers have two bags.

passengers with more than two bags are not considered, as the percentage of passengers with more than two bags is negligible.

you want to know:

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): $

see my spreadsheet displays for the calculations required to get your answer.

$$$$

$$$

the answers to your questions are:

a) The average baggage-related revenue per passenger is (please round to the nearest cent):

the average baggage related revenue per passenger is $15.70.

b) The standard deviation of baggage-related revenue is (please round to the nearest cent):

the standard deviation of baggage related revenue is $19.95.

c) About how much revenue should the airline expect for a flight of 120 passengers? (please round to the nearest dollar):

the baggage related revenue for a flight of 120 passengers is estimated to be about $1884.00