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Unformatted text preview: crew) Then we calculated the probability for each reservation number using binomdist function of excel We chose an appropriate probability of over booking which we used to calculate the revenue and over booking expense Finally we found our total net revenue Conclusion We decided Mimi should book 159 passengers for each of her round trip flights and set her fee to $290 round trip For passengers who were overbooked and showed up an additional $100 compensation would be given as well as a refund If Mimi were to follow this plan, she can expect to make 3.375 Million dollars per year...
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This note was uploaded on 04/01/2012 for the course MGQ 301 taught by Professor Orrange during the Fall '09 term at SUNY Buffalo.
- Fall '09