10. Jet Green is unhappy with the number of empty seats on its route from Newark, NJ to Orland, FL (the flights are less

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10 Jet Green Is Unhappy With The Number Of Empty Seats On Its Route From Newark Nj To Orland Fl The Flights Are Less 1 (23.19 KiB) Viewed 11 times

10. Jet Green is unhappy with the number of empty seats on its route from Newark, NJ to Orland, FL (the flights are less than half full on average). The regular ticket price is $229 and management is considering a special discounted air fare of only $142.99. At that price Jet Green will fill out all seats made available at the special discount. The aircraft flown between Newark and Orlando holds 140 passengers. a. The demand distribution at current fare of $229, which will continue in the future, is shown below. What is the average unutilized capacity and the average revenue per flight? Full-fare passengers 50 55 60 65 70 75 80 Frequency 10 15 25 35 25 15 10 b. How many seats should Jet Green reserve for full-fare passengers? What will be the average revenue per flight? c. Now consider that demand of full-fare passengers is normally distributed with mean of 65 and standard deviation of 8 passengers. How many seats should Jet Green reserve for full-fare passengers?