An airline offers two fare classes for coach seats on a particular flight: full-fare class at $440/ticket and economy class at $218/ticket. There are 230 coach seats on the aircraft. Demand for full-fare seats has a mean of 43, a standard deviation of 8, and the following empirical distribution:

a) Find the (i) protection level and (ii) booking limit for low-fare seats.
b) Suppose that unsold seats may sometimes be sold at the last minute at a very reduced rate (similar to USAirways' "esavers" for last-minute travel). What effect will this have on the protection level calculated in (a)? Explain.

Cumulative probability Problem (d sQ) 0.25 0.31 0.35 0.36 0.42 0.49 0.51 0.54 0.57 0.62 0.65 0.70 0.74 0.80 0.89 1.00 Full-fare demand Probability pro (d-Q) 0.02 0.06 0.04 0.01 0.06 0.07 0.02 0.03 0.03 0.05 0.03 0.05 0.04 0.06 0.09 0.11 40 41 42 43 45 46 47 48 49 50 51 52 53 54