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STATS Question - A flight from Long Beach to Seattle

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Question;A flight from Long Beach to Seattle has 150 seats. The airline knows that the number ofcancellation will vary according to the following table. The fare is $400 and the estimated deniedboarding cost is $900, so, the net denied boarding cost is $900-$400=$500. How many seatsshould the airline sell for this flight in order to maximize the expected revenue?#cancellationProbability10.220.230.240.250.160.1

 

Paper#61656 | Written in 18-Jul-2015

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