Mr. X. operates 17 flights a day on 30-seat planes, and for each flight, Mr.X  can sell up to 32 seats at $200 each. If more people show up than Mr.X has seats for. Mr.X has to pay them $500 each. If Mr.X sells 32 tickets, the probability that all 32 show up is 5%, 31 people show up is 10%, and thus the probability that 30 or fewer people show up is 85%. If Mr. X sells 31 tickets, the probability that exactly 31 people show up is 10%. If Mr.X sells the profit-maximizing number of tickets on each flight, how much money would Mr.X  expect to earn each day? Assume all of the tickets Mr.X offers for sale will be bought. Answer to the nearest thousands of dollars without the dollar sign. 

Answer rating: 100% (QA)

To calculate the expected daily earnings for Mr X we need to consider the different scenarios based ... View the full answer