Question: Problem 11-5 (Algo) Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline

Problem 11-5 (Algo) Next week, Super Discount

Problem 11-5 (Algo) Next week, Super Discount

Problem 11-5 (Algo) Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from history that an average of 24 customers (with a standard deviation of 13) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $105. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $215. Super Discount considers the cost of flying the plane from New York to Los Angeles a sunk cost. By how many seats should Super Discount overbook the flight? (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places. Round your answer to the nearest whole number.) Overbook by Problem 11-7 (Algo) Wholemark is an Internet order business that sells one popular New Year's greeting card once a year. The cost of the paper on which the card is printed is $0.10 per card, and the cost of printing is $0.20 per card. The company receives $2.15 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Its customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with a mean of 4,700 and a standard deviation 480. (Assume these four are independent.) What is the optimal production quantity for the card? (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places. Round your answer to the nearest whole number.) Optimal production quantity

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