Question: please Create an Excel spreadsheet using @Risk that allows you to solve the following problem and answer the questions listed below: A ticket from New
Create an Excel spreadsheet using @Risk that allows you to solve the following problem and answer the questions listed below: A ticket from New York to San Juan on Plop Airlines sells for \$190. The plane can hold 110 people. It costs $9,000 to fly an empty plane. The airline incurs variable costs of $35 (food and fuel) for each person on the plane. If the flight is overbooked, anyone who cannot get a seat receives $200 in compensation. On average, 95% of all people who have a reservation show up for the flight. a) To maximize expected profit, how many reservations for the flight should be taken by Plop? ( 70 points) b) If the airline has a policy that 50% of the tickets are sold at $160 and the other 50% at $220, explain how to solve the problem. (30 points) Hint: The @Risk function RISKBINOMIAL can be used to simulate the number of passengers who show up. If the number of reservations taken is in cell A2, then the formula RISKBINOMIAL(A2,.95) will generate the number of customers who actually show up for a flight. (Winston 2004)
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