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4 D (Q6 - Q9) Jet Airways Jet Airways flight from Philadelphia to Boston has 350 seats. The high fare on the flight is $780
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D (Q6 - Q9) Jet Airways Jet Airways flight from Philadelphia to Boston has 350 seats. The high fare on the flight is $780 and the restricted/low fare is $500. There is ample demand for the low fare class but high fare demand is uncertain. Demand for the high fare is normally distributed with a mean of 150 and a standard deviation of 45. Further, the customers buy low-fare tickets well in advance of high fare customers. D Question 6 What is the optimal protection level for the high fare tickets? D Question 7 What is the probability that there are at least five (i.e. five or more) empty seats when a booking limit of 200 is selected for the low-fare tickets? (Note: The probability can be expressed as a simple fraction or a percentage. For example, if your answer is 0.70 (= 70 %), you may enter the answer as either 0.70 or 70.)Step by Step Solution
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