Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13 answer is wrong. The correct answer is 91.61%. 2 passengers were overbooked. Hence, if 2 passengers (or fewer) do not show up for the

13 answer is wrong. The correct answer is 91.61%. 2 passengers were overbooked. Hence, if 2 passengers (or fewer) do not show up for the flight, the flight will be full and there will be no empty seats. If 3 passengers do not show up, we will have 1 empty seat. If 5 passengers do not show up, we will have (5 - 2 = 3) empty seats. If more than 5 passengers do not show up, we will have more than 3 empty seats. Therefore, "three or fewer empty seats" is equivalent to "5 or fewer no-shows". Thus, Probability (three or fewer empty seats) = Probability (No Shows <= 5) = F(5) , where (recall) the distribution of no-shows is Poisson with a mean of 3. Enter = 3 and Q = 5 in the "Analytics for a given Q" table for the Poisson demand model in the Newsvendor calculator. We see that F(5) = In-stock probability when Q = 5 = 91.61%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Business Analytics

Authors: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

2nd edition

1305627733, 978-1305861817, 1305861817, 978-0357688960, 978-1305627734

More Books

Students also viewed these Mathematics questions

Question

identify the classifications of interventions;

Answered: 1 week ago

Question

What are the key elements of a system investigation report?

Answered: 1 week ago