Question

A popular airline knows that, in general, 95% of individuals who purchase a ticket for a 10-seat commuter flight actually shows up for the flight

Answer 1

That statement is true.
According to the statistic, 5 % of individuals who purchased the ticket never actually showed up (which means 95% of them actually showed up).
Because of this, Airlines tend to sell more tickets that their total seats in order to maximize their profit.