3. An airline company operates a plane between ATL and DC. This plane has 120 seats for economy class with two price tiers: low fare at $250 and high fare at $420. The low fare seats target for travelers and there is an unlimited demand from travelers. So seats o ered at $250 will always be sold out. The high fare seats target for business travelers and the company believes that the number of business travelers for this route follows Poisson with mean 20. As business travelers plan for their travels in the last minute, any seats assigned to business travelers must be remained and cannot be o ered to travelers. How many seats should be assigned to the business travelers to maximize the revenue?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “3. An airline company operates a plane between ATL and DC. This plane has 120 seats for economy class with two price tiers: low fare at ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Expected benefits, which will result from implementation of the project and define success, establish
Answers (1)
If the price of Coca-Cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the demand for Coca-Cola is:
Answers (1)
Al's Sport Store has sales of $897,400, costs of goods sold of $628,300, inventory of $208,400, and accounts receivable of $74,100. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? a. 74.
Answers (1)
Sarah, a manager at Ackles Inc, plays pranks on her subordinates in an attempt to make the workplace livelier. She trusts her subordinates and does not care much about the quality of their work.
Answers (2)
Consider the impact of the following two events in the television market. First, people are using more tablets and fewer television sets. Second, new production techniques decrease the production cost of television sets.
Answers (1)
New Questions in Business
Now consider a strangle using the same call with a strike price of $100 and a different put with a strike price of $95. Both have the same expiration date.
Answers (1)
Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its costs of equity is 15 percent, and the cost of debt is 8 Percent. The relevant tax rate is 35 percent.
Answers (1)
That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a (n) a. balance sheet b. trial balance c. chart of accounts d. income statement
Answers (1)
Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case.
Answers (1)
Suppose during 2014 that Federal Express reported the following information (in millions) : net sales of $35,497 and net income of $98.
Answers (2)