How many seats should the airline overbook

Assignment Help Operation Management
Reference no: EM132233731

Suppose that the number of cancellations (C) from passengers on a particular flight is as follows: Prob(C=0)=0.3, Prob(C=1)=0.4, Prob(C=2)=0.2, and Prob(C=3)=0.1. In order to increase the revenue, the airline decides to adopt overbooking by accepting more business passengers. The fare prices for business passengers remain $250 and the denied boarding cost is $650. How many seats should the airline overbook?

Reference no: EM132233731

Services of public goods and explain position

Identify and describe two major issues that have recently surfaced in the public sector. Take a position on whether these issues will influence the services of public goods an

Information on indicidual verus group decision making

Conduct an internet search for information on indicidual verus group decision making. Then, compare and contrast individual and group decision-making. What are the advantages

Illustrate what effectiveness approach would you prefer

Assume you have been asked to evaluate the effectiveness of the police department in a medium-sized community. Where would you begin also explain how would you proceed. Illu

Some companies use realistic recruitment

Some companies use realistic recruitment or realistic job previews to give their applicants the opportunity to make a better choice on whether they fit in with the organizatio

Why a low-cost provider strategy is well-suited to industry

Walmart's low-cost position in the supermarket industry. Explain in 250 words or more how Walmart has built its low-cost advantage in the industry and why a low-cost provide

Discuss how you would improve your listening skills

Our alertness to the stimuli that surround us varies from time to time. Sometimes we are keenly alert and pick up the stronger stimuli (especially words). But sometimes we pic

Assume that the reliability and standard deviation

Design a freeway pavement structure in an urban area for 20 years. An initial annual traffic is 250,000 EASLs and no annual growth factor is considered during design periods. 

What are some of the different types of conflicts

While most people do not like conflict, it is important for effective supervisors to address conflict in the workplace. What are some of the different types of conflicts and w


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd