Airlines constantly monitor the booking curve for each flight of their network. Simply put, a booking...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Airlines constantly monitor the "booking curve" for each flight of their network. Simply put, a booking curve is the time-phased trajectory of the bookings. From one day to the next, bookings follow the following simple relationship: Bi+1 (B₁+1+1)*(1-C) where. B= Total bookings at the end of day i Ii Incremental bookings that come in on day i C Cancellation Rate For a certain flight an airline operates a plane with 200 seats. Currently it has a total of 160 bookings (Bo). It estimates the daily (incremental) bookings to follow a normal distribution with mean = 8 and std deviation = 2. It also estimates its daily cancellation rate to be 4% What will the total bookings be at the end of ten days? The airline has a stated goal of keeping the probability of denied boarding to be no more than 1%. Will this flight satisfy that corporate objective? [Assume there are no transactions (bookings or cancellations) after the end of ten days.] [Run 1000 iterations using @Risk. Save results so that grader can check values from your runs] Airlines constantly monitor the "booking curve" for each flight of their network. Simply put, a booking curve is the time-phased trajectory of the bookings. From one day to the next, bookings follow the following simple relationship: Bi+1 (B₁+1+1)*(1-C) where. B= Total bookings at the end of day i Ii Incremental bookings that come in on day i C Cancellation Rate For a certain flight an airline operates a plane with 200 seats. Currently it has a total of 160 bookings (Bo). It estimates the daily (incremental) bookings to follow a normal distribution with mean = 8 and std deviation = 2. It also estimates its daily cancellation rate to be 4% What will the total bookings be at the end of ten days? The airline has a stated goal of keeping the probability of denied boarding to be no more than 1%. Will this flight satisfy that corporate objective? [Assume there are no transactions (bookings or cancellations) after the end of ten days.] [Run 1000 iterations using @Risk. Save results so that grader can check values from your runs]
Expert Answer:
Answer rating: 100% (QA)
What will the total bookings be at the end of ten days Bi1 B 1i1 1 C 160 1i1 1 004 161 1i1 096 After 10 days B10 161 101 096 161 9 096 25056 Therefore ... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood
Posted Date:
Students also viewed these accounting questions
-
An airline sells 200 tickets for a certain flight on an airplane that has only 198 seats because, on the average, 1 percent of purchasers of airline tickets do not appear for the departure of their...
-
An airline makes 200 reservations for a flight that holds 185 passengers. The probability that a passenger arrives for the flight is 0.9 and the passengers are assumed to be independent. (a)...
-
The following CPM network has estimates of the normal time in weeks listed for the activities: a. Identify the critical path. b. What is the length of time to complete the project? c. Which...
-
The binding constants for Mg2+ and Ca2+ are too similar for the species to be determined independently by titration without proper treatment. When a dilute NaOH solution is added to the tap water...
-
A consumer buys n light bulbs, each of which has a lifetime that has a mean of 800 hours, a standard deviation of 100 hours, and a normal distribution. A light bulb is replaced by another as soon as...
-
Given the three nonzero vectors A, B, and C, show that if A (BC) = 0, the three vectors must lie in the same plane.
-
Reconciling a control account and a subsidiary ledger Hannas Homeware bought merchandise from three suppliers during September on credit, as shown in the Accounts Payable Control account on the next...
-
Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was...
-
A hiker and his dog have discovered a skeleton hidden deep in the woods. The medical examiner has identified this skeleton as female. What characteristics of the skeleton would help the examiner make...
-
Troys Tires sells a certain brand tire which has a daily demand that is normally distributed, with a mean of 15 tires and a standard deviation of 4 tires. (In your model use integers for all...
-
I. Name the following compounds using the IUPAC system. 1. CH3 CH CH3 H3C. CH .CH CH2 CH H3 (CH3)3 CH FCH2 2. H,C H3 3. H,C CH-C=C -CH H,C CH-CH3
-
A child pushes a merry - go - round 1 . 0 m from the center, with a force of 1 0 0 N in the tangential direction. If the merry - go - round starts at rest and completes the first turn in 1 0 s , what...
-
The maximum allowed IRA (Individual Retirement Account) contribution for retirement in 2023 is $6,500 if you're below 50 years old and $7,500 if you're 50 or older.Assume these contribution limits...
-
Consider that you are the Manager of a boutique hotel on the island of Kauai, Hawaii that retains, over 60 employees. What would be your communication strategy and what do you hope to achieve?
-
Marlie's supervisor was told by the company's HR office that he was no longer going to be part of the department's management team. They informed him that he would be returning to his former Tech III...
-
One problem and one solution for each: A barrier to communication you removed. A technique you applied top resolve a communication challenge The technique you used to resolve a conflict. An example...
-
Performance Criteria P.C. 3.1 Present data in a clear format appropriate for budget reporting P.C. 3.2 Complete reports for specified periods and projects within agreed timeframes P.C. 3.3 Identify...
-
Why is disclosure of depreciation or amortization methods and rates so important?
-
On November 1, 2017, Freya Albatter's orthodontic office received a $2,500 prepayment from a client for dental work to be performed on November 22. The appointment got postponed until January 15,...
-
The Wholesale Company began the year with inventory of $24,000. During the year, the company purchased $272,000 of goods and returned $18,000 due to damage. At year end, the Inventory balance was...
-
Name the two methods of accounting for uncollectible receivables. Which method is easier to apply? Which method is consistent with GAAP?
-
A diploid organism has a total of 14 chromosomes and about 20,000 genes per haploid genome. Approximately how many genes are in each linkage group?
-
By conducting testcrosses, researchers have found that the sweet pea plant has seven linkage groups. How many chromosomes would you expect to find in leaf cells of sweet pea plants?
-
Describe the unique features of ascomycetes that facilitate genetic analysis of these fungi.
Study smarter with the SolutionInn App