Explain how many seats should the airline reserve for class

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Reference no: EM1375581

Q. A flight has 91 seats left. The full-fare tickets are priced at $600 also the discount tickets are priced at $350. The airline estimates which the demand of full fare customers is between 51 also 100, all numbers equally likely.

a) To maximize the expected revenue, should the airline sell one more discount ticket?

b) Explain how many seats should the airline reserve for the full fare class?

Reference no: EM1375581

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