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eco-A flight is almost fully booked and it has only 4 seats left.

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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;1;2;3;4;5;6;7;8;9;10;Probability;0.05;0.05;0.1;0.15;0.2;0.15;0.1;0.1;0.05;0.05;P(D>=x);1;0.95;0.9;0.80;0.65;0.45;0.30;0.20;0.10;0.05;i.;(5;points) To maximize expected revenue, should the airline sell one more discount;ticket?;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.;i.;(5;points) To maximize expected revenue, should the airline sell one more discount;ticket?;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.;i.;(5;points) To maximize expected revenue, should the airline sell one more discount;ticket?;ii.;(5;points) How many seats should the airline reserve for the full fare class?

 

Paper#55739 | Written in 18-Jul-2015

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