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.
 Fall '07
 Vaitsos
 Accounting, Management

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