Question: 7. 1.50 points Problem 11-5 Next week, Super Discount Airlines has a fight from New York to Los Angeles that will be booked to capacity.
7. 1.50 points Problem 11-5 Next week, Super Discount Airlines has a fight from New York to Los Angeles that will be booked to capacity. The airline knows from past history that an average of 40 customers with a standard deviation of 26) cancel their reservation or do not show for the flight Revenue from a ticket on the fight is $140. If the fight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a tree round-trip ticket on a future flight. The cost of this free round-trip ticket averages $270. Super Discount consider the cost of flying the plane from New York to Los Angeles a sunk cost By how many seats should Super Discount overbook the fight? Use Excel's NORMSINVO function to find the correct critical value for the given a level. Do not found intermediate calculations. Round your answer to the nearest whole number) Overbooked by References Book & Resources Worksheet D uty commediate Problem 11-5 Learning Objectives 11-02 Anayze how dinerent inventory control systems
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