An airline offers two fare classes for coach seats on a particular flight: full-fare class at $440/ticket and economy class at $218/ticket. There are 230 coach seats on the aircraft. Demand for full-fare seats has a mean of 43, a standard deviation of 8, and the following empirical distribution:

a) Find the (i) protection level and (ii) booking limit for low-fare seats.
b) Suppose that unsold seats may sometimes be sold at the last minute at a very reduced rate (similar to USAirways' "esavers" for last-minute travel). What effect will this have on the protection level calculated in (a)? Explain.

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Cumulative probability Problem (d sQ) 0.25 0.31 0.35 0.36 0.42 0.49 0.51 0.54 0.57 0.62 0.65 0.70 0.74 0.80 0.89 1.00 Full-fare demand Probability pro (d-Q) 0.02 0.06 0.04 0.01 0.06 0.07 0.02 0.03 0.03 0.05 0.03 0.05 0.04 0.06 0.09 0.11 40 41 42 43 45 46 47 48 49 50 51 52 53 54