The Megabus operates between New York City and Philadelphia and is a popular mode of transportation for Drexel students. Each bus can accommodate 30 passengers, and Megabus makes a profit of $10 on each passenger. Since student schedules can change at the last minute, the actual number of passengers who show up to take the bus may differ from the number of reservations. If Megabus overbooks by taking 32 reservations, the probability distribution for the number of passengers who actually show up is given in the following table: # of Passengers Who Show Up Probability 28 0.05 29 0.25 30 0.5 31 0.15 32 0.05 If a passenger has a reservation but cannot get a seat on the bus, there will be a significant cost of $150 per passenger for loss of goodwill. Use simulation to evaluate the proposed overbooking strategy.
The Megabus operates between New York City and Philadelphia and is a popular mode of transportation for Drexel students. Each bus can accommodate 30 passengers, and Megabus makes a profit of $10 on each passenger. Since student schedules can change at the last minute, the actual number of passengers who show up to take the bus may differ from the number of reservations. If Megabus overbooks by taking 32 reservations, the probability distribution for the number of passengers who actually show up is given in the following table: # of Passengers Who Show Up Probability 28 0.05 29 0.25 30 0.5 31 0.15 32 0.05 If a passenger has a reservation but cannot get a seat on the bus, there will be a significant cost of $150 per passenger for loss of goodwill. Use simulation to evaluate the proposed overbooking strategy.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The Megabus operates between New York City and Philadelphia and is a popular mode of transportation for Drexel students. Each bus can accommodate 30 passengers, and Megabus makes a profit of $10 on each passenger. Since student
If Megabus overbooks by taking 32 reservations, the probability distribution for the number of passengers who actually show up is given in the following table:
| # of Passengers Who Show Up | Probability |
| 28 | 0.05 |
| 29 | 0.25 |
| 30 | 0.5 |
| 31 | 0.15 |
| 32 | 0.05 |
If a passenger has a reservation but cannot get a seat on the bus, there will be a significant cost of $150 per passenger for loss of goodwill.
Use simulation to evaluate the proposed overbooking strategy.
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