American Airlines (AA) has ordered a new fleet of airplanes. At this stage of the contract, AA's operations manager must specify the seating configuration on the airplane that will be used on the Charlotte - Miami - New York City - Charlotte circuit. AA flies this circuit once per day. The configuration decision involves specifying how many rows will be allocated for business- class seats and how many for coach seats. Each business-class row contains 4 seats and each coach row contains 6 seats. If the aircraft were configured entirely of coach rows, there would be 40 rows. Business-class seats are wider and afford more legroom, so that, in order to make room for one business-class row, two coach rows must be removed. Thus, conversion from coach to business-class seating involves the loss of some seats, but this loss might be compensated from the higher prices paid by the business-class passengers. The revenues rates for business-class and coach seats are given below. Table 1: Revenue per Seat Charlotte - Miami Miami - New York City New York City - Charlotte Business-class $550 $400 $450 Table 2: Distribution of Total Demand for Seats Minimum 160 140 150 Charlotte - Miami Miami - New York City New York City - Charlotte A perfect match between the configuration and the demand for seats is seldom possible. Historical data suggests a probability of demand for seats on each leg (as detailed below). Table 3: Distribution of Fraction Business Class Fraction of Business-Class 5% 12% 15% Coach $300 Most Likely 180 200 200 175 $200 There is another distribution for the fraction of demand that corresponds to business-class seats (given below). While demand seems to vary on each leg of the circuit, this distribution of fraction applies on all legs. It is assumed that if a passenger cannot book a seat in the seating category he/she intends to book, then he/she will simply buy a seat from AA's competitors. Maximum 220 240 225 Probability 0.2 0.5 0.3 The fixed cost of operating the airplane is $125,000 per day for the full circuit. AA is seeking a profit-maximizing configuration.