What is the optimal protection level for the high fare

Assignment Help Operation Management

Reference no: EM131767317

A newly created NorthEast Airways (NE) flight from Austin to Boston has 300 seats. The high fare on the flight is $800 and the restricted/low fare is $300. There is ample demand for the low fare class but high fare demand is random. Further, those customers who buy low fares buy their tickets well in advance before high fare customers. Assume the demand for the high fare is normally distributed with mean 120 and standard deviation of 50.

Mr. Wright is in charge of the flight booking operations and decides to set a protection level for the high fare. What is the optimal protection level for the high fare?

Reference no: EM131767317

Questions Cloud

State appropriate hypotheses for a test : Who owns iPods? As part of the Pew Internet and American Life Project, researchers surveyed a random sample of 800 teens and a separate random sample of 400.

Proper role for a corporation in the pursuit of its business : One of the most contentious debates among scholars has centered on the proper role for a corporation in the pursuit of its business

What would happen to efficiency : How would you accomplish this in the short run and what would happen to your efficiency? How would you most efficiently accomplish this in the long run?

Compute accounts-receivable and inventory-turnover ratios : Suppose that Alaska's major line of business involves the processing and distribution of fresh and frozen fish throughout the United States

What is the optimal protection level for the high fare : A newly created NorthEast Airways (NE) flight from Austin to Boston has 300 seats. What is the optimal protection level for the high fare?

Define an attempt to improve athletic performance : Steroids in high school A study by the National Athletic Trainers Association surveyed random samples of 1679 high school freshmen and 1366 high school seniors.

Who are the stakeholders in this situation : You note that the press release contains only positive or improved ratios and none of the negative or deteriorated ratios. Who are the stakeholders

How would you most efficiently accomplish : You wanted to increase your production of beer. How would you accomplish this in the short run and what would happen to your efficiency?

How do you implement lean systems in business : How do you implement lean systems in business? Write three paragraph on Important Factors in Subcontracting Project Management Teams.

User Account

All Pages