Question: 4 please show all work i need the problem broken down and explained I operate 59 flights a day on 30 seat planes, and for
I operate 59 flights a day on 30 seat planes, and for each flight I can sell up to 32 seats at $200 each. If more people show up than I have seats for, I have to pay them $500 each. If I sell 32 tickets, the probability that all 32 show up is 5%,31 people show up is 10%, and thus the probability that 30 or fewer people show up is 85%. If I sell 31 tickets, the probability that exactly 31 people show up is 10%. If I sell the profit maximizing number of tickets on each flight, how much money would I expect to earn each day? Assume all of the tickets I offer for sale will be bought. Answer to the nearest thousands of dollars without the dollar sign. For example, if your answer is $434.332, enter 434,332 in the box
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
