1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Firdavs [7]
3 years ago
5

Data for a Poisson with mean 10 A BigJet flight from Philadelphia to Boston has 60 seats. The high fare is $400 and the low fare

is $100. There is ample demand for the low fare class and they buy well in advance before high fare customers Demand for the high fare is Poisson with mean 10, 1 0.000 0.000 2 0.002 0.003 3 0.008 0.010 40.019 0.029 5 0.038 0.067 60.063 0.130 7 0.090 0.220 80.113 0.333 9 0.125 0.458 100.1250.583 11 0.114 0.697 12 0.0950.792 13 0.073 0.864 14 0.052 0.917 15 0.0350.951 00.000 0.000 10.0 9.0 8.0 7.0 6.0 5.0 4.1 3.2 2.5 1.8 1.3 0.8 0.5 0.3 0.2 0.1 To choose a protection level... What is Co? What is Cu? What is the optimal protection level? With the optimal protection level.. How many high fare seats can then expect to sell? What is the probability of a full flight? What is the optimal booking limit?
Business
1 answer:
barxatty [35]3 years ago
6 0

Answer:

Consider the following calculations

Explanation:

Co = low fare = $ 100

Cu = high fare - low fare = 400 - 100 = $ 300

Critical ratio = Cu/(Cu+Co) = 300/(300+100) = 0.75

In the table, look for F(q) >= 0.75 , that value is 0.792 and corresponding value of q = 12. Therefore,

Optimal protection level = 12

Refer the table for q=12, Expected shortage, L(q) = 0.5

Expected high fare seats to be sold = Mean demand - Expected shortage = 10-0.5 = 9.5

Probability of a full flight = 0.792

You might be interested in
"Mrs. Smith operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of pr
Molodets [167]

Answer:

Mrs.Smith should continue to operate the business in the short run but shut down in the long run.

Explanation:

According to the shut down rule, at the profit-maximizing positive level of output, a business in a competitive market should continue to operate in the short-term if the price equals to or is greater than the average variable cost, but should shut down in the long term if the price is less than or equal to total cost. Here,

price = $8.10

avg variable cost = $8.00

avg total cost = $8.25

Mrs.Smith should continue to operate the business in the short run but shut down in the long run.

6 0
3 years ago
Read 2 more answers
Benson, Inc., manufactures a single product. The company's plantwide overhead rate is $25 per machine-hour (MH). Each unit of pr
viva [34]

Answer:

Total unitary cost= $29.8

Explanation:

Giving the following information:

The company's plantwide overhead rate is $25 per machine-hour (MH). Each unit of the product requires 0.6 machine hours. The direct material cost per unit of product is estimated at $10.96 and direct labor cost is estimated at $3.84 per unit.

Total unitary cost= 10.96 + 3.84 + (25*0.6)= $29.8

7 0
4 years ago
Class, Let's work on this together. Becca would like to organize BMI as either an LLC or as a C corporation generating a 4 perce
kodGreya [7K]

Answer:

                                                LLC         Description     C Corp.  Description

(1) Pretax earnings                 $18,000  4%*$450,000  $18000  4%*$450,000

(2) Entity level tax                       0                                  $2,700    15% × (1)

(3) After-tax entity earnings  $18,000    (1) – (2)            $15,300   (1) – (2)

(4) Owner tax                          $5,040      (3)*28%            $2,295     (3)* 15%

(5) After-tax earnings             $12,960     (3)- (4)             $13,005   (3) – (4)

6 0
3 years ago
It is always a good idea to bring along extra
prohojiy [21]

Answer:

In my personal opinion A would ve the best answer

Explanation:

what if you have two job interveiws and the first one wants to for sure keep it

7 0
4 years ago
Read 2 more answers
Rockwood International needs to make risky decisions on a daily basis. Therefore, its managers are likely to
gizmo_the_mogwai [7]

Answer:

Centralize decision making

Explanation:

From the question we are informed about Rockwood International who needs to make risky decisions on a daily basis. Therefore, its managers are likely to Centralize decision making.

Centralization can be regarded as setup whereby decision-making powers are been concentrated or given to few leaders that are on top of the organizational structure. Decisions making are been carried out at the top then communicated to lower-level managers so that implementation can take place.

5 0
3 years ago
Other questions:
  • Suppose one of the suppliers to Trinity Health System offers terms of 3/15, net 45.
    5·1 answer
  • A popular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was w
    12·1 answer
  • Back Bay Company is a price−taker and uses target pricing. Refer to the following​ information:Production volume602,000units per
    12·1 answer
  • If the rate of inflation is 2.2% per year, the future price pt (in dollars) of a certain item can be modeled by the following ex
    10·1 answer
  • _____ exists because people's wants for goods and services are greater than the number of products that can be made from availab
    8·1 answer
  • Flynn Company's monthly bank statement showed the ending balance of cash of $22,750. The bank reconciliation for the period show
    10·1 answer
  • You might find a free trade zone ...
    15·1 answer
  • A project has an initial cost of $14,500 and produces cash inflows of $4,600, $6,100, and $8,500 over the next three years, resp
    15·1 answer
  • Nate is investing in a partnership with David. Nate contributes as part of his initial investment, Accounts Receivable of $60,00
    11·2 answers
  • Clothing retail stores are an example of this market structure.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!