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Question
The Art institute of Chicago is thinking of introducing a special reduced rate to the museum for weekday admissions. Suppose that the proposed weekday and weekend rates are p1 and p2. A pricing analyst has used data from other museums to estimate a multinomial choice model for modeling the choice behavior of customers between visiting on a weekday, visiting on a weekend, and not visiting at all. The attractiveness of visiting on a weekday is exp(30 - p1), on a weekend is exp(45 - p2), and of not visiting is 1. If the museum sets a price of p1 = 30 on a weekday and p2 = 45 on a weekend, what is the expected revenue if the total number of potential customers is 1000?
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They had become close friends. Jennifer was offered an exciting new job in Brisbane provided that she can take up the position in seven days.
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