How many seats should be protected for business customers

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Reference no: EM132287481

You are in charge of setting the protection level in a revenue management system for a flight between Columbia and Chicago. The passengers on the flight are either leisure customers who are not willing to pay more than the $200 discount price, or business customers who purchase closer to the time of departure and are willing to pay the full $300 price. Using the Normal Distribution table, how many seats should be protected for the business customers? The demand for the business class customers is forecasted to be 50 and the historical forecast error has a standard deviation of 10.

Reference no: EM132287481

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