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OM 201 Quiz 1 Assignment

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Question

1.;A flight is almost fully booked and it has only 4 seats left. The full-fare tickets are priced at $600;and the discount tickets are priced at $400. The airline has 3 analysts?Steve, John and Mary.;a) Steve estimates that the demand of full fare customers is distributed according to the following table.;#full fare;customers;Probability;P(D>=x);1;0.0;5;1;2;0.0;5;0.9;5;3;0.1;0.9;4;0.1;5;0.8;0;5;0.2;0.6;5;6;0.1;5;0.4;5;7;8;0.1;0.3;0;0.1;0.2;0;9;0.0;5;0.1;0;10;0.0;5;0.0;5;a.i. (5 points) To maximize expected revenue, should the airline sell one more discount ticket?;a.ii. (5 points) How many seats should the airline reserve for the full fare class?;b) John estimates demand for full-fare customers is distributed uniformly between 2 and 9.;a.i. (5 points) To maximize expected revenue, should the airline sell one more discount ticket?;a.ii. (5 points) How many seats should the airline reserve for the full fare class?;c) Mary estimates demand for full-fare customers is distributed normally with a mean of 6 and standard;deviation of 3.;a.i. (5 points) To maximize expected revenue, should the airline sell one more discount ticket?;a.ii. (5 points) How many seats should the airline reserve for the full fare class?

 

Paper#25543 | Written in 18-Jul-2015

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