
Business Analytics (2nd Edition)
2nd Edition
ISBN: 9780321997821
Author: James R. Evans
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 1, Problem 16PE
The demand for airline travel is quite sensitive to price. Typically, there is an inverse relationship between demand and price, when price decreases, demand increases and vice versa. One major airline has found that when the price (P) for a round trip between Chicago and Los Angeles is $600, the demand (D) is 500 passengers per day. When the price is reduced to $400, demand is 1,200 passengers per day
- Plot these points on a
coordinate system and develop a linear model that relates demand to price. - Develop a prescriptive model that will determine what price to charge to maximize the total revenue.
- By trial and error, can you find the optimal solution that maximizes total revenue?
Expert Solution & Answer

Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Business Discuss
The following data represent total ventilation measured in liters of air per minute per square meter of body area for two independent (and randomly chosen) samples.
Analyze these data using the appropriate non-parametric hypothesis test
each column represents before & after measurements on the same individual. Analyze with the appropriate non-parametric hypothesis test for a paired design.
Chapter 1 Solutions
Business Analytics (2nd Edition)
Ch. 1 - Discuss how you might use business analytics in...Ch. 1 - A supermarket has been experiencing long lines...Ch. 1 - Suggest some metrics that a hotel might want to...Ch. 1 - Prob. 4PECh. 1 - Classify each of the data elements in the Sales...Ch. 1 - Identify each of the variables in the Excel file...Ch. 1 - Classify each of the varaibles in the Excel file...Ch. 1 - A survey handed out to individuals at a major...Ch. 1 - A bank developed a model for predicting the...Ch. 1 - Four key marketing decision variables are price...
Ch. 1 - Suppose that a manufacturer can produce a part for...Ch. 1 - Return on investment (ROl) is computed in the...Ch. 1 - Total marketing effort is a term used to describe...Ch. 1 - Automobiles have different fuel economies (mpg),...Ch. 1 - A manufacturer of mp3 players is preparing to set...Ch. 1 - The demand for airline travel is quite sensitive...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Should you be confident in applying your regression equation to estimate the heart rate of a python at 35°C? Why or why not?arrow_forwardGiven your fitted regression line, what would be the residual for snake #5 (10 C)?arrow_forwardCalculate the 95% confidence interval around your estimate of r using Fisher’s z-transformation. In your final answer, make sure to back-transform to the original units.arrow_forward
- BUSINESS DISCUSSarrow_forwardA researcher wishes to estimate, with 90% confidence, the population proportion of adults who support labeling legislation for genetically modified organisms (GMOs). Her estimate must be accurate within 4% of the true proportion. (a) No preliminary estimate is available. Find the minimum sample size needed. (b) Find the minimum sample size needed, using a prior study that found that 65% of the respondents said they support labeling legislation for GMOs. (c) Compare the results from parts (a) and (b). ... (a) What is the minimum sample size needed assuming that no prior information is available? n = (Round up to the nearest whole number as needed.)arrow_forwardThe table available below shows the costs per mile (in cents) for a sample of automobiles. At a = 0.05, can you conclude that at least one mean cost per mile is different from the others? Click on the icon to view the data table. Let Hss, HMS, HLS, Hsuv and Hмy represent the mean costs per mile for small sedans, medium sedans, large sedans, SUV 4WDs, and minivans respectively. What are the hypotheses for this test? OA. Ho: Not all the means are equal. Ha Hss HMS HLS HSUV HMV B. Ho Hss HMS HLS HSUV = μMV Ha: Hss *HMS *HLS*HSUV * HMV C. Ho Hss HMS HLS HSUV =μMV = = H: Not all the means are equal. D. Ho Hss HMS HLS HSUV HMV Ha Hss HMS HLS =HSUV = HMVarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage LearningAlgebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
- Algebra for College StudentsAlgebraISBN:9781285195780Author:Jerome E. Kaufmann, Karen L. SchwittersPublisher:Cengage LearningLinear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage Learning

College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning

Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning


Algebra for College Students
Algebra
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Cengage Learning


Linear Algebra: A Modern Introduction
Algebra
ISBN:9781285463247
Author:David Poole
Publisher:Cengage Learning
What is a Linear Equation in One Variable?; Author: Don't Memorise;https://www.youtube.com/watch?v=lDOYdBgtnjY;License: Standard YouTube License, CC-BY
Linear Equation | Solving Linear Equations | What is Linear Equation in one variable ?; Author: Najam Academy;https://www.youtube.com/watch?v=tHm3X_Ta_iE;License: Standard YouTube License, CC-BY