(PHL–LAX) Consider the Philadelphia–Los Angeles flight discussed in Q18.5. Assume the available… 1 answer below »
(PHL–LAX) Consider the Philadelphia–Los Angeles flying discussed in Q18.5. Postulate the suited ability is 200 seats and there is no overbooking. The excellent forfeiture is $675 and the low forfeiture is $375. Ask-for for the low forfeiture is ample suitableness ask-for for the excellent forfeiture is normally nice after a while a balance of 80 and plummet deflexion of 35.
a. What is the presumption of selling 200 reservations if you set an optimal refuge raze for the ample forfeiture? [18.2]
b. Suppose a refuge raze of 85 is periodical. What is the middle enumerate of lost excellent-forfeiture passengers? [18.2]
c. Continue to postulate a refuge raze of 85 is periodical. What is the expected enumerate of unobstructed seats? [18.2]
d. Again postulate a refuge raze of 85 is periodical. What is the expected wealth from the flying? [18.2]