Leetsokniga () is a social networking site with membership mainly concentrated in countries using the Cyrillic alphabet. In a roll-up to an IPO, they are trying to demonstrate their revenue potential by selling display ads that can be targeted to individual users. Norbel Semaj, Leetsokniga's CMO, has segmented the user base into 1100 segments based on demographics and interests. He then started sales of up to 5 ads on each user's home page. Initially, he organized an auction for the ads as in sponsored search advertising, but he noticed that the auctions almost always close at $2/click with each of the top bidders bidding virtually the same amount. He attributes this to the placement of the 5 display ads generating equivalent click--through rates in any of the 5 positions where they are offered (3 on the top and 1 on each side). Norbel believes that many advertisers might be willing to pay more and has tried multiple experiments using different posted prices for various consumer segments when the auction for the ads had little activity one-week and one-day before the running date of the ad. He has found that a $3/click rate one week in advance and $5/click rate a day in advance lead to maximum contributions. From his observations, it appears that the one-day-in-advance advertisers are daily-deal sites that have a limited time window to reach their target customer segment. The one-week-in-advance advertisers appear to be firms with excess inventory or capacity (for service firms) who are trying to reach potential customers directly. The remaining advertisers, who appear unwilling to offer above the $2/click price point, represent the remaining mix of firms.

Suppose Norbel moves to offering display ads at fixed prices of $2, $3, and $5 per click aimed at each advertiser segment, For a single Leetsokniga membership group, Norbel has compiled the frequency data, mean, and standard deviation of requests at the different price points (and times) in Table 1 below.

Table 1. Leetsokniga customer data for single membership group.

Suppose Norbel decides on a multi-class reservation control model to protect higher-priced demand from being cannibalized. For the segment data from Table 1, what would Norbel set as a protection level solely for the $5/click advertiser segment?