Does the airline had the correct decision to overbook for 6 passengers? If not, how many?

Question

American Air Flight 2705 from New York to Boston has seats for 120 passengers. Usually every passenger reserves a seat in advance. Because this particular line is very busy, usually all the seats are reserved. Someone who reserves a seat, can show up or not. An average of 5% of people with reservations doesn’t show up, so American Air overbooks by accepting 126 reservations for the 120 seats.

Answer 1

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