Create simulation to evaluate overbooking strategy

Assignment Help HR Management

Reference no: EM132132523

An airline operates a commuter plane that holds 30 passengers. For every seat that has a passenger on the flight, the airline makes a $230 profit. The airline takes 30 reservations for the flight but has an average of a couple passengers not showing up. Their average profit per flight has been about $5,975.

Create a simulation to evaluate an overbooking strategy in which the airline would accept 32 reservations even though the airplane holds only 30 passengers. The probability distribution for the number of passengers showing up when 32 reservations are accepted is as follows:

Showing UP Probability

28 .11

29 .13

30 .42

31 .24

32 .10

The airline will incur a cost of $375 for any passengers denied seating on the flight. Once you complete the first row (Trial 1) of your simulation, copy and paste the rows below so you complete 100 trials.

In cell F11, calculate the average net profit from the 100 trials. In cell I11, recommend either 30 reservations or 32 reservations include the difference in the average profits.

Make sure all your Excel entries in row 16 are referring to cell locations and using “$” where needed.

Column C represents the number of passengers showing up. Column D represents the number of passengers allowed on the flight (there are only 30 seats). Column F represents the number of passengers that were denied a seat. Column G represents the overbooking cost.

Reference no: EM132132523

Questions Cloud

Conundrum found in a magazine or newspaper article : Describe an ethical conundrum found in a magazine or newspaper article, and please give your own thoughts.

Outline the characteristics of on-the-job training : Outline the characteristics of on-the-job training (OJT).

Post a brief description of two strengths : Post a brief description of two strengths and two limitations of situational approaches to leadership. Then, briefly describe the leader and situation.

Analyze the causes of the cybercrime : From the e-Activity, analyze the causes of the cybercrime and make a recommendation on how to prevent that type of crime

Create simulation to evaluate overbooking strategy : Create a simulation to evaluate an overbooking strategy in which the airline would accept 32 reservations even though the airplane holds only 30 passengers.

How does the music reinforce the lyrical stance : How does the music reinforce the lyrical stance? Does the performance present the group as a force or as merely a trend? Elaborate.

How does you have got a friend fit with her prior works : What is the song form and how does this dissection help analyze how the song is performed? What role does the vocal play in contrast to the instrumentation?

Discuss the given fallacy in detail : A fallacy is an error in reasoning or thinking, sometimes called a "thinking error." We have learned about a few fallacies in thinking, but here are a few more.

Business plan-feasibility analysis and business model : Describe the similarities and differences between a business plan, feasibility analysis and business model.

User Account

All Pages