For the situation in Example 14.2-4, determine the optimum business protection level given business demand is discrete uniform in the range [30, 49] with f = $750 and d = $350.

Example 14.2-4

Historical data for the number of business travelers on the 125-seat daily flight between XNA and LAX are tallied per the following frequency histogram:

Ticket price for the two classes are $500 for leisure and $800 for business.

Transcribed Image Text:

Number of Business travelers Frequency < 81 10 81 4 82 3 83 84 85 86 87 88 89 5 6 7 9 8 7 7 90 6 > 90 2