Old MathJax webview

step by step please

(Show all your works, including all computational procedures and details) t Pusan Airlines runs daily flights from Pusan to Tokyo. There are only two price classes (Economy class and Business class) for the seats. The firm charges $100 per one-way ticket for the Economy class, and $250 per one-way ticket for the Business class. There are 80 seats available on a plane. Distribution of demand for Business class is known, Demand for Economy class is unlimited. How many seats should the Pusan Airline allocate to the Business class to maximize expected profit. + (a) Assume that cumulative demand for the Business class distribution is given as ro X 30 (b) Assume that demand for the Business class distribution is fairly closely approximated by a normal distribution with mean 20 and standard deviation 3. (C) Assume now that Pusan Airline is adopting a new policy. + In the new policy, whenever empty Business class seats appear, the company fills the empty seats by allowing new Economy class passengers to board the airplane and up-grades their tickets to Business class (note that these consumers still pay $100). Assume that demand for the Business class distribution is a normal distribution with mean 50 and standard deviation 20.+