{"id":77660,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/eco-a-flight-is-almost-fully-booked-and-it-has-only-4-seats-left"},"modified":"2017-08-18T07:15:38","modified_gmt":"2017-08-18T07:15:38","slug":"eco-a-flight-is-almost-fully-booked-and-it-has-only-4-seats-left","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/eco-a-flight-is-almost-fully-booked-and-it-has-only-4-seats-left\/","title":{"rendered":"eco-A flight is almost fully booked and it has only 4 seats left."},"content":{"rendered":"<p><span style=\"font-size: large\">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\u2014Steve, John and Mary.<\/span><\/p>\n<p><span style=\"font-size: large\">a) Steve estimates that the demand of full fare customers is distributed according to the following table.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-size: large\">#full fare customers<\/span><\/td>\n<td><span style=\"font-size: large\">1<\/span><\/td>\n<td><span style=\"font-size: large\">2<\/span><\/td>\n<td><span style=\"font-size: large\">3<\/span><\/td>\n<td><span style=\"font-size: large\">4<\/span><\/td>\n<td><span style=\"font-size: large\">5<\/span><\/td>\n<td><span style=\"font-size: large\">6<\/span><\/td>\n<td><span style=\"font-size: large\">7<\/span><\/td>\n<td><span style=\"font-size: large\">8<\/span><\/td>\n<td><span style=\"font-size: large\">9<\/span><\/td>\n<td><span style=\"font-size: large\">10<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: large\">Probability<\/span><\/td>\n<td><span style=\"font-size: large\">0.05<\/span><\/td>\n<td><span style=\"font-size: large\">0.05<\/span><\/td>\n<td><span style=\"font-size: large\">0.1<\/span><\/td>\n<td><span style=\"font-size: large\">0.15<\/span><\/td>\n<td><span style=\"font-size: large\">0.2<\/span><\/td>\n<td><span style=\"font-size: large\">0.15<\/span><\/td>\n<td><span style=\"font-size: large\">0.1<\/span><\/td>\n<td><span style=\"font-size: large\">0.1<\/span><\/td>\n<td><span style=\"font-size: large\">0.05<\/span><\/td>\n<td><span style=\"font-size: large\">0.05<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-size: large\">P(D&gt;=x)<\/span><\/td>\n<td><span style=\"font-size: large\">1<\/span><\/td>\n<td><span style=\"font-size: large\">0.95<\/span><\/td>\n<td><span style=\"font-size: large\">0.9<\/span><\/td>\n<td><span style=\"font-size: large\">0.80<\/span><\/td>\n<td><span style=\"font-size: large\">0.65<\/span><\/td>\n<td><span style=\"font-size: large\">0.45<\/span><\/td>\n<td><span style=\"font-size: large\">0.30<\/span><\/td>\n<td><span style=\"font-size: large\">0.20<\/span><\/td>\n<td><span style=\"font-size: large\">0.10<\/span><\/td>\n<td><span style=\"font-size: large\">0.05<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-size: large\">i. (5 points) To maximize expected revenue, should the airline sell one more discount ticket?<\/span><\/p>\n<p><span style=\"font-size: large\">ii. (5 points) How many seats should the airline reserve for the full fare class?<\/span><\/p>\n<p><span style=\"font-size: large\">b) John estimates demand for full-fare customers is distributed uniformly between 2 and 9.<\/span><\/p>\n<p><span style=\"font-size: large\">i. (5 points) To maximize expected revenue, should the airline sell one more discount ticket?<\/span><\/p>\n<p><span style=\"font-size: large\">ii. (5 points) How many seats should the airline reserve for the full fare class?<\/span><\/p>\n<p><span style=\"font-size: large\">c) Mary estimates demand for full-fare customers is distributed normally with a mean of 6 and standard deviation of 3.<\/span><\/p>\n<p><span style=\"font-size: large\">i. (5 points) To maximize expected revenue, should the airline sell one more discount ticket?<\/span><\/p>\n<p><span style=\"font-size: large\">ii. (5 points) How many seats should the airline reserve for the full fare class?<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2014Steve, John and Mary. a) Steve estimates <a href=\"https:\/\/www.benedictsol.com\/blogs\/eco-a-flight-is-almost-fully-booked-and-it-has-only-4-seats-left\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-77660","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=77660"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77660\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=77660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=77660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=77660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}