A Delta flight from ATL to PUJ (Punta Cana, Dominican Republic) has a capacity of 200...
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A Delta flight from ATL to PUJ (Punta Cana, Dominican Republic) has a capacity of 200 passengers and fills up quickly for the Thanksgiving holiday. Delta does not want any seats to be wasted on this flight due to no-shows. The ticket costs $350. In the past, no-shows have followed a normal distribution with a mean of 25 and a standard deviation of 10. If Delta cannot accommodate a passenger on this flight, the passenger will be sent to Miami on a Delta flight and then to San Juan, PR on an American Airlines flight. The passenger will spend the night at a San Juan airport hotel. The next morning, the passenger will be flown by American to Punta Cana. In addition to the denied boarding compensation (DBC) based on the US-DOT formula, Delta airline needs to pay American Airlines $500 for re- accommodation. The hotel and food vouchers cost $100. Compute the optimal overbooking limit. (a) What is the DBC based on the US-DOT formula? [Select] (b) What is the total denial cost? [Select] (c) What is the optimal overbooking limit? [Select] A Delta flight from ATL to PUJ (Punta Cana, Dominican Republic) has a capacity of 200 passengers and fills up quickly for the Thanksgiving holiday. Delta does not want any seats to be wasted on this flight due to no-shows. The ticket costs $350. In the past, no-shows have followed a normal distribution with a mean of 25 and a standard deviation of 10. If Delta cannot accommodate a passenger on this flight, the passenger will be sent to Miami on a Delta flight and then to San Juan, PR on an American Airlines flight. The passenger will spend the night at a San Juan airport hotel. The next morning, the passenger will be flown by American to Punta Cana. In addition to the denied boarding compensation (DBC) based on the US-DOT formula, Delta airline needs to pay American Airlines $500 for re- accommodation. The hotel and food vouchers cost $100. Compute the optimal overbooking limit. (a) What is the DBC based on the US-DOT formula? [Select] (b) What is the total denial cost? [Select] (c) What is the optimal overbooking limit? [Select]
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