Question 2 Case Study.doc - QUESTION 2 PROBLEM STATEMENT...

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QUESTION 2 PROBLEM STATEMENT AND BACKGROUND OF THE PROBLEM A student Union association are planning to do a graduation ball but there are 2 ticket pricing scheme that they need to choose and they are having problem of tight budget. They need to choose a more expensive ticket scheme with unlimited drinks or a cheaper ticket scheme with only limited amount of drinks. 2(A) Graduation Ball for Scheme 1 : Y scheme1 = RM30 Graduation Ball for Scheme 2 : Y scheme2 = RM15 + 3.50X (X is the number of drinks consumed while Y is the total expenditure of the night) Drinks 1 2 3 4 5 6 7 8 9 10 Y scheme1 30 30 30 30 30 30 30 30 30 30 Y scheme2 15 22 25.5 29 32.5 36 39.5 43 46.5 50
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QUESTION 2 (B) Yscheme1 = 30 .......... 1 Yscheme2 = 15 + 3.50X ........... 2 Substitute 1 into 2 Y = 15 + 3.50X 30 = 15 + 3.50X 15 = 3.50X 3.50X = 15 X = = 4.29 (more than 4 glasses of drinks) Based on the graph above, if majority of the people that going to the graduation ball will drink less than 4 glasses of drinks, then they should choose scheme 2 because it is
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Unformatted text preview: cheaper than scheme 1 in case they are drinking less than 4 glasses of drinks. If majority of people will drink more than 4 glasses of drinks, then they should choose scheme 1 because although it is more expensive than scheme 2 but all drinks are unlimited all night long so they only need to pay for one time which is the RM 30. QUESTION 2 (C) Yes if majority of the people that are going to the graduation ball still want to choose scheme 2 rather than scheme 1 because of the price that is offered is cheaper than scheme 1 although they are willing to pay extra money for more than 4 drinks. 50 . 3 15 4.29 CONCLUSION If they are in an out of budget situation, we might have to choose scheme 2 because it is cheaper than scheme 1 but if we are planning to sit there until late night and drinking more glasses of drinks, then they should choose scheme 1 rather than scheme 2....
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