(a) Explanation Given: The ticket of an airline costs $ 400 . 6 reservations have been accepted for three flight seats. The probability of a person showing up is 0.6 , and if the person shows up and does not get a seat, then he gets a refund. Explanation: The airlines’ expected income is weighted sum of probabilities with their respective incomes. Let E be the expected income of airlines: E = ∑ x = 0 6 p ( x ) × E ( x ) Now, substitute the value of probabilities and earnings for the respective values of x : E = 0 ( 0 (b) To determine The expected airline income from 3 , 4 , 5 , and 6 bookings. Compare these values and find the number of reservations for the 3 seats in order to maximize the expected revenue.

11th Edition

ISBN: 9780321979438

Author: Margaret L. Lial, Raymond N. Greenwell, Nathan P. Ritchey

Publisher: PEARSON

See similar textbooks

Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear re…

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

Videos

Question

Chapter 8, Problem 67RE

(a)

To determine

The expected airline income from three seats.

(b)

To determine

The expected airline income from 3, 4, 5, and 6 bookings. Compare these values and find the number of reservations for the 3 seats in order to maximize the expected revenue.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 8, Problem 66RE

Chapter 8, Problem 68RE

Students have asked these similar questions

A linear programming computer package is needed. Epsilon Airlines services predominately the eastern and southeastern United States. A vast majority of Epsilon's customers make reservations through Epsilon's website, but a small percentage of customers make reservations via phone. Epsilon employs call-center personnel to handle these reservations along with any problems with the website reservation system and for the rebooking of flights for customers if their plans change or their travel is disrupted. Staffing the call center appropriately is a challenge for Epsilon's management team. Having too many employees on hand is a waste of money, but having too few results in very poor customer service and the potential loss of customers. Epsilon analysts have estimated the minimum number of call-center employees needed by day of week for the upcoming vacation season (June, July, and the first two weeks of August). These estimates are given in the following table. Day Minimum Number of…

ind Original: 100-200 = 20,000 200400=20,000 80 602=3600 694761 =4 4x1.3225-6.29 4761/3600 = 1-3225 5.29-1058msy 6). The dose to the body was 200 mSv. Find the dose to the lung in mrem? W 200ms 20 2.15 and 8) A technique of 20 mAs, 40 kV produces a f4 Sy Find the dose to the Thyroid in

original ssD 400x (100) 2 400 x (14)=100 34 10or (2)² = 100 × (0-85) = 100 x = 72.25 100x 40 72.25 =36.13 500 36.13 13.84 O. 7225 12x13.84≈ 166.08mAs 10) The dose of a radiograph was 100 mSv with a technique of: 10 mAs, 180 kV at 200 cm and tabletop. If the technique is changed to: 20 mAs, 153 kV at 100 cm using a 5:1 grid then find the new dose in rem to the Lungs. 11) A radiographic technique produces an exposure index of EI= 300 and TEI=600 at a source- to-image receptor distance (SID) of 200 cm, 100 kV, 5:1 grid using 10 mAs. If the technique is changed to 100 cm and 85 kV and 5 mAs with table top find the new exposure index? What is the value of DI? 10

Chapter 8 Solutions

Finite Mathematics (11th Edition)

Ch. 8.1 - In Exercises 112, evaluate the factorial or...Ch. 8.1 - Prob. 2E Ch. 8.1 - Prob. 3E Ch. 8.1 - In Exercises 112, evaluate the factorial or...Ch. 8.1 - In Exercises 112, evaluate the factorial or...Ch. 8.1 - In Exercises 112, evaluate the factorial or...Ch. 8.1 - Prob. 7E Ch. 8.1 - Prob. 8E Ch. 8.1 - Prob. 9E Ch. 8.1 - In Exercises 1-12, evaluate the factorial or...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.

The expected airline income from three seats.

Solution Summary: The author concludes that the table is the required answer.

Concept explainers

Videos

The expected airline income from three seats.

The expected airline income from 3, 4, 5, and 6 bookings. Compare these values and find the number of reservations for the 3 seats in order to maximize the expected revenue.

Want to see the full answer?

Chapter 8 Solutions