natalee24
natalee24
12.08.2020 • 
Business

Trojan Airlines has been operating a flight with a single class fare. Suppose the denied boarding cost is $600. From the historical records, number of passengers who does not show up in the flight has the following distribution. Number of no-show-ups 0 1 2 3 4
Probability 0.25 0.25 0.2 0.2 0.1

Suppose that the manager, who took 311, computed that the optimal number of seats to overbook is 1. Then, which of the following is correct about the ticket price?

a.The ticket price must be between $100 and $200.
b.The ticket price must be between $150 and $300.
c. The ticket price must be between $200 and $400.
d. The ticket price must be between $300 and $600.

Solved
Show answers

Ask an AI advisor a question