Homework_8_F_08 - are priced at $200 The airline estimates...

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1 BUAD 311T Homework 8 1. JCA Chapter 9A Problem 2 (page 348) 2. JCA Chapter 9A 8 Problem 6 (page 349) 3. JCA Chapter 9A Problem 8 (page 350) 4. One week before a flight, an airline still has 35 seats left for this flight. The airline estimates the following demand information in the table. Price Demand 200 40 225 35 250 30 300 20 350 10 a. For each price point, how many seats can this airline sell and what is the corresponding revenue? b. Among these prices, which price should the airline pick to maximize the revenue? 5. A flight has 6 seats left. The full-fare tickets are priced at $300 and the discount tickets
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Unformatted text preview: are priced at $200. The airline estimates that the demand of full fare customers is uniformly distributed between 1 and 10. a. If the airline closes discount ticket sales now, what is the chance that this flight would have empty seat(s)? b. To maximize the expected revenue, should the airline sell one more discount ticket? c. How will your answer change if the flight has 5 seats left instead? d. How will your answer change if the flight has 4 seats left instead?...
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This note was uploaded on 07/21/2009 for the course BUAD 311T taught by Professor Vaitsos during the Fall '07 term at USC.

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