Lately, to stimulate demand for its Montreal route, Air Canada has decided to offer a special non-refundable, non-exchangeable, one-month advance-purchased ticket on its Toronto-
Montreal route for only $250 instead of the regular $450 round-trip fare. The Airbus 320 used by Air Canada has a capacity of 150 passengers in tourist class. Past data analysis showed that the demand for full-fare tickets follows a normal distribution with a mean of 75 and a standard deviation of 15.

Determine the optimum number of seats that should be reserved for the full-fare passengers. Suppose special offer tickets would be sold as soon as they are released.

Answer rating: 100% (QA)

When the airline decides to offer loweredprice tickets it needs to reserve a certain number of seats ... View the full answer