An airline has two fares: high and low. Airplanes have a capacity of 150 seats. The airline has determined that the optimal protection limit for the high fare given the demand information is 40 seats. What is the optimal booking limit for the low fare customers?

A. 60 seats

B. 110 seats

C. 20 seats

D. 75 seats

The airline bought new aircrafts due to which the capacity of the flight is now 200 seats instead of 150. If the demand characteristics remain the same, what is the new booking limit for the low fare customers?

A. 50 seats

B. 30 seats

C. 160 seats

D. 40 seats

Consider question 3. The capacity of the flight is now 200 seats. However, due to an upcoming event, the demand distribution for the low fare seats changed fromNormal with mean 100 and standard deviation 40 to Normal with mean 150 and standard deviation 40. What is the new booking limit for the flight?

A. 35 seats

B. 140 seats

C. 160 seats

D. 40 seats