An airline ticket sells tickets for a flight from DFW to New York city on a certain day. There are 100 seats on a flight

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899604
Joined: Mon Aug 02, 2021 8:13 am

An airline ticket sells tickets for a flight from DFW to New York city on a certain day. There are 100 seats on a flight

Post by answerhappygod »

An airline ticket sells tickets for a flight from DFW to New
York city on a certain day. There are 100 seats on a flight. Th
airline decides that will sell these seats at $100 until one week.
The airline believes that the demands for seats on this
flight at the $100 price is much larger than 100 ( the total
seating capacity on the flight): in other words; it is 100%
confident that it will sell all the seats offered at the $100 price
before the last week. The airline also believes that the number of
seats demanded by customers in the last week at the $500 price is
uniformly distributed from 1,2,3….100. Which of the following is
the closest to the optimal value of the protection limit if the
airline wants to maximize its expected revenue on this flight? Need
solution with formula.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply