Granite State Airlines also serves the route between Washington, D.C. (Reagan), and Portsmouth, New Hampshire, with a single flight daily. The airline sells both discount-fare and full-fare tickets. The airline has assigned a 100-seat aircraft to the flight. Using Littlewood’s rule, the airline has determined that the optimal discountfare booking limit for a flight departing in two weeks is 40.

a. What is the protection level for the flight?

b. The revenue manager has learned that the annual Yorkshire Terrier Fancier’s Convention will be in Portsmouth in two weeks. As a result, he increased the forecast of mean discount-fare demand by 50% over its previous value. The fullfare forecast remained the same. What are the new booking limits and protection levels for this flight?

c. Right after learning about the Yorkshire Terrier Fancier’s Convention, the revenue manager learned that, because of maintenance problems, there will also be a switch of aircraft on the flight. Instead of a 100-seat aircraft, the flight will be served by a 120-seat aircraft. What are the new booking limits and protection levels for this flight?

d. The full fare for the flight is $200, and the discount fare is $100. What is the expected full-fare demand for this flight, assuming that both discount-fare and full-fare demand follow normal distributions?

TABLE 9.9 Booking demands by fare class for the previous 12 departures for the Senilria flight described in Exercise 4 Demand by booking class M B Y 1234567 184 84 78 88 36 36 132 64 58 102 50 36 60 20 20 176 86 76 126 54 44 8 154 74 70 9 182 82 82 2=2 10 160 74 72 11 130 60 54 12 88 38 28