Business, 12.08.2020 08:01 gracetay3721

Trojan Airlines has been operating a flight with a single class fare. Suppose the denied boarding cost is $600. From the historical records, number of passengers who does not show up in the flight has the following distribution. Number of no-show-ups 0 1 2 3 4
Probability 0.25 0.25 0.2 0.2 0.1

Suppose that the manager, who took 311, computed that the optimal number of seats to overbook is 1. Then, which of the following is correct about the ticket price?

a. The ticket price must be between $100 and $200.
b. The ticket price must be between $150 and $300.
c. The ticket price must be between $200 and $400.
d. The ticket price must be between $300 and $600.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 04:00

Assume that the following conditions exist: a. all banks are fully loaned up- there are no excess reserves, and desired excess reserves are always zero. b. the money multiplier is 5 . c. the planned investment schedule is such that at a 4 percent rate of interest, investment =$1450 billion. at 5 percent, investment is $1420 billion. d. the investment multiplier is 3 . e.. the initial equilibrium level of real gdp is $12 trillion. f. the equilibrium rate of interest is 4 percent now the fed engages in contractionary monetary policy. it sells $1 billion worth of bonds, which reduces the money supply, which in turn raises the market rate of interest by 1 percentage point. calculate the decrease in money supply after fed's sale of bonds: $nothing billion.

Answers: 2

Answer

Business, 22.06.2019 08:30

Which of the following is an example of search costs? a.) driving to a faraway place to find available goods b.) buying goods in some special way that is outside the normal channels c.) paying a premium cost for goods d.) selling extra goods for a discount price

Answers: 1

Answer

Business, 22.06.2019 19:50

Ichelle is attending college and has a part-time job. once she finishes college, michelle would like to relocate to a metropolitan area. she wants to build her savings so that she will have a "nest egg" to start her off. michelle works out her budget and decides she can afford to set aside $9090 per month for savings. her bank will pay her 4 %4% per year, compounded monthly, on her savings account. what will be michelle's balance in five years?

Answers: 3

Answer

Business, 23.06.2019 09:30

Craig complained to his friend jess that a class was too hard and he believed that the teacher was not being fair with his grading standards. jess replied, "craig, you really have an attitude problem." what is the relationship between the manner that the term attitude is used in common conversation and the how it is defined in consumer behavior? there is no relationship. common usage is not the same as attitudes as seen by the researchers who study consumer behavior. the term attitude is widely used in popular culture in much the same way it is used in studying consumer behavior. they are different in that popular culture does not recognize that attitudes are temporary. otherwise the usage is the same. they are similar except that popular culture assumes that attitudes are related to beliefs, and research scientists have shown that there is no such relationship.

Answers: 2

Answer

You know the right answer?

Trojan Airlines has been operating a flight with a single class fare. Suppose the denied boarding co...

Questions