Answered step by step
Verified Expert Solution
Question
1 Approved Answer
We recommend using a new workbook for each @ Risk part and combining all workbooks together at the end. For each@Risk part, use the following
We recommend using a new workbook for each @ Risk part and combining all workbooks together at the end. For each@Risk part, use the following instructions to export simulation results to Excel: - Click on Explore and select Results Summary. - Click on Export in the lower right-hand corner and select "Export to Excel...". - Choose "New Worksheet in Active Workbook". - Check "Export Active Table Only". - Click "OK". Hudson Airline opened a new line from Chicago to Las Vegas and bought a new plane which can offer at most 200 seats. According to the historical data from the last 5 years, some customers do not show up and miss the flight. The number of no-show customers can be considered as a normal distribution with a mean of 6 and a standard deviation of 2.2. Melissa Wegenka-Moretti, the director of revenue maximization, plans to sell more than 200 tickets to account for the no-shows. Tickets sell for $360. Customers who do not show are refunded $310. If 201 customers show up for the same flight, Hudson has to reschedule one customer to another airline and compensate this customer, which will cost Hudson $480 per excess customer. The fixed operations cost is $20,000 per flight. There is a variable cost of $26 for each passenger who boards the flight. Melissa would like to maximize their expected mean profit per flight. Determine the best number of reservations to take using an @ RISK model. Additional instructions: Consider the alternatives of selling 201,202,203,,210 tickets. Create a able reporting the observed mean profit for each alternative. For each simulation, use 1,000 terations. nclude a textbox stating the best number of tickets to sell with the observed average profit. Remember to include the Results Summary report
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started