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Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from history
Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from history that an average of 22 customers (with a standard deviation of 12 ) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $103. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages' $212. Super Discount considers the cost of flying the plane from New York to Los Angeles a sunk cost. By how many seats should Super Discount overbook the flight? Note: Use Excel's NORM.S.INV0 function to find the z value. Round z value to 2 decimal places. Round your answer to the nearest whole number. The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any lettuce that is left from the previous day is sold to a dealer that reselis it to formers who use it to feed their animals. This week, the supermarket can buy fresh lettuce for $8.00 a box. The lettuce is sold for $16.00 a box and the dealer that sells old lettuce is willing to pay $1.80 a box. Past history says that tomorrow's demand for lettuce averages 245 boxes with a standard deviation of 38 boxes. How many boxes of lettuce should the supermarket purchase tomorrow? Note: Use Excel's NORM.S.INV0 function to find the z value. Round your answer to the nearest whole number
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