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Rise is considering a temporary increase in ticket prices as more people have become willing to pay to travel. Using goal seek, what would happen
Rise is considering a temporary increase in ticket prices as more people have become willing to pay to travel. Using goal seek, what would happen to the hreakeven point if Rise decided to charge $300 per ticket? As with most airlines, Rise has to decide ahead of time how many tickets to overbook in order to avoid ying any empty aircraft (which would change the break-even percentage). The most common routes are typically hooked to capacity but with the recent leniency in rebooking due to Covid, on average 7 customers (with a standard deviation of 10} do not show up for their flite. The average revenue collected remains $200 per ticket. However, if someone shows up to an overhooked ite, Rise airlines has to compensate them with a free ticket to anywhere else in the US. This ticket could cost Rise as much as $300. A. Using the Normal Distribution, complete the Newsvendor calculation for how many seats they should overbook. B. Based on that information, how many seats should they sell per ite
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