Question: 5. For the Airline Pricing Model in Chapter 9 , suppose that the fixed cost is triangular with a minimum of $80,000, most likely value
5. For the Airline Pricing Model in Chapter 9 , suppose that the fixed cost is triangular with a minimum of $80,000, most likely value of $90,000, and maximum value of
$95,000. Also assume that the values of the slope and intercept in the demand function are uniformly distributed plus or minus 5% around their current values.
Find the distribution of profit for a unit price of $500.
Use the Decision Table tool to find the best price between $400 and $600 in steps of $25.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
