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SW Airlines offers 11 flights between Chicago and Phoenix daily. Discount fare is $182, while full fare is $398. Assume that 137 seats are available

SW Airlines offers 11 flights between Chicago and Phoenix daily. Discount fare is $182, while full fare is $398. Assume that 137 seats are available on

SWA 737 aircraft.

What is the optimal booking limit on discount fare if SWA expects 30 full fare customers, +/ 15, at 1 deviation ? How many seats would be protected for full

fare customers?

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