Question: A BigJet flight from D . C . to Chicago has 6 0 seats. The high fare is $ 3 0 0 and the low

A BigJet flight from D

.

.

to Chicago has

60

seats. The high fare is $

300

and the low fare is $

200 .

There is ample demand for the low fare class and they buy well in advance before high fare customers. Demand for the high fare follows normal distribution with mean

40

and standard deviation

10 .

What is the optimal number of seats the airline should reserve for high fare customers?

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