Question: Reconsider the Blue Skies Airlines example presented in Sec. 18.8. Regarding the flight under consideration, recent experience indicates that the demand for the very low
Reconsider the Blue Skies Airlines example presented in Sec. 18.8. Regarding the flight under consideration, recent experience indicates that the demand for the very low discount fare of $200 is so high that it may be possible to considerably increase this fare and still usually fill up the airplane with both leisure and business travelers. Therefore, management wants to learn how the optimal number of reservation slots to reserve for class 1 customers would change if this fare were to be increased. Make this calculation for new fares of $300, $400, $500, and $600.
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In each case L 200 p 1 1000 and D has a normal distribution with mean60 and standard devi... View full answer
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