Question: A ticket from Indianapolis to Orlando on Deleast Airlines sells
A ticket from Indianapolis to Orlando on Deleast Airlines sells for $150. The plane can hold 100 people. It costs Deleast $8000 to fly an empty plane. Each person on the plane incurs variable costs of $30 (for food and fuel). If the flight is overbooked, anyone who cannot get a seat receives $300 in compensation. On average, 95% of all people who have a reservation show up for the flight. To maximize expected profit, how many reservations for the flight should Deleast book?
Relevant QuestionsThe file S02_01.xlsx indicates the gender and nationality of the MBA incoming class in two successive years at the Kelley School of Business at Indiana University. a. For each year, create tables of counts of gender and of ...The file S02_10.xlsx contains midterm and final exam scores for 96 students in a corporate finance course.a. Create a histogram for each of the two sets of exam scores.b. What are the mean and median scores on each of these ...Based on Marcus (1990). The Balboa mutual fund has beaten the Standard and Poor’s 500 during 11 of the last 13 years. People use this as an argument that you can beat the market. Here is another way to look at it that ...A company is trying to determine the proper capacity level for its new electric car. A unit of capacity provides the potential to produce one car per year. It costs $10,000 to build a unit of capacity and the cost is charged ...An automobile manufacturer is considering whether to introduce a new model called the Racer. The profitability of the Racer depends on the following factors:The fixed cost of developing the Racer is triangularly distributed ...
Post your question