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How to solve this question? 1. The New England Aquarium currently offers two types of daily-pass tickets: refundable full-fare tickets available any time for $35,
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1. The New England Aquarium currently offers two types of daily-pass tickets: refundable full-fare tickets available any time for $35, and non-refundable discounted $25 tickets for online purchases made at least 2 weeks in advance. For safety reasons, the number of people in the aquarium at a given time is limited to 300 . Therefore, the aquarium does not sell more than 300 tickets for each day, and wants to protect some of its limited capacity for full-fare customers. Assume that the demand for refundable (full-fare) tickets is distributed by the following table, and that the demand for discounted tickets is high enough to fill up the unprotected capacity ahead of the full fare demand. (1) What is the optimal (revenue-maximizing) protection level for full-fare tickets per day? (20 points) (2) What are the expected number of discounted and full-fare tickets sold (in each day) under the optimal protection level, as well as the total expected revenue? ( 30 points)
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