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
omeli [17]
3 years ago
15

Next week, super discount airlines has a flight from new york to los angeles that will be booked to capacity. the airline knows

from past history that an average of 35 customers (with a standard deviation of 24) cancel their reservation or do not show for the flight. revenue from a ticket on the flight is $134. if the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. the cost of this free round-trip ticket averages $263. super discount considers the cost of flying the plane from new york to los angeles a sunk cost. by how many seats should super discount overbook the flight? (use excel's normsinv() function to find the correct critical value for the given α-level. do not round intermediate calculations. round your answer to the nearest whole number.)
Business
1 answer:
Setler79 [48]3 years ago
4 0
The cost of underestimating the demand is considered a revenue loss that arises due to cancellation of flight costing $134. Hence, cost of underetimating the demand is C_u=\$134.

The cost of overestimating the demand is known as rewards. For example, free round trip ticket worth $263. Hence, the cost of overestimating the demand is C_o=\$263.

\frac{C_u}{C_u+C_o} = \frac{134}{134+263}  \\  \\ = \frac{134}{397} =0.3375

The z-score that yields a p-value of 0.3375 is -0.4193.

Thus, super discount airlines should overbook the flight by 35 + (-0.4193 x 24) = 35 - 10.0632 = 24.9368 = 25 seats.

Therefore, super discount airlines should overbook the flight by 25 seats.
You might be interested in
An agent sells his client 10 U.S. government bonds due to mature in 30 years. According to NASAA's Statement of Policy on Unethi
Artemon [7]

Answer:

The bonds are guaranteed as to principal and interest payments by the US government.

Explanation:

According to NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents, a broker can say US government bonds are guaranteed on principal and interest payments.

However if inflation sets in and interest rates rises there is no guarantee from the government that interest paid on the bonds will match the higher interest rate.

So legally this statement is correct, even though the investor can lose money as a result of higher interest rate in the future.

4 0
3 years ago
What are the differences between flexibility and compromise
marin [14]

Answer:

Flexibility mean you're more flexible about doing something. For example you could have flexible working hours which would mean you can work alot of the time like you can bend easily around when you work and compromise means you're wiling to meet in the middle so an agreement made that makes everyone happy.

5 0
3 years ago
Volbeat Corporation has bonds on the market with 10.5 years to maturity, a YTM of 6.2 percent, a par value of $1,000, and a curr
densk [106]

Answer:

The answer is 5.47 percent

Explanation:

Firstly, we find coupon payment (PMT).

it can be gotten from the price (present value) of bond formula:

PV = PMT/(1+r)^1 + PMT/(1+r)^2 ....... PMT + FV/(1+r)^n

N = 10.5 years

1/Y = 6.2 percent

PV = $945

PMT = ?

FV = $1000

Using a Financial calculator to input all the variables above,

Annual PMT = $54.72

Semi annual will be $54.72/2= $27.36

Coupon rate is Annual PMT /par value

= $54.72/1000

0.0547 or 5.47 percent

7 0
3 years ago
When practicing entrepreneurship, starting with means at hand involves ______. a.using your available resources to fund your ven
lord [1]

When practicing entrepreneurship, starting with means at hand involves analyzing who you are.

<h3>What is entrepreneurship?</h3>

entrepreneurship can be regarded as the term that describes owing a business and been responsible for both the risk and the profit.

Therefore, as an entrepreneur , you must be able to analyze who you are, so as to know your strength.

Learn more about entrepreneurship at;

brainly.com/question/22477690

#SPJ1

3 0
2 years ago
The Net Present Value method of project evaluation is preferred over the Internal Rate of Return method because the Net Present
Leno4ka [110]
A because it’s right idkk o think it’s right I honestly guessed
4 0
3 years ago
Other questions:
  • One major difference between a nation's balance of trade and its balance of payments is that
    13·1 answer
  • Suppose the government has imposed a price ceiling on sale of laptop computers. Which of the following events could transform th
    10·1 answer
  • Is when manufacturers direct their promotional efforts toward channel partners to convince them to order and stock products?
    11·1 answer
  • Why are websites operated by recognized print publishers, such as newspapers and journals, generally accurate and reliable?
    6·1 answer
  • Suppose a small manufacturing business wishes to have a system to manage all its vital business operations, they should go for a
    14·1 answer
  • The adjusting entry to account for use of prepaid insurance consists of: Multiple Choice a debit to Insurance Expense and a cred
    15·1 answer
  • If Ed​ Lusk, VP for​ operations, proceeds with the existing prototype​ (option a), the firm can expect sales to be 110 comma 000
    7·1 answer
  • Sau khi thực hiện kiểm toán, KTV xác định là:
    12·1 answer
  • Ever since Damien interned at an accounting firm the summer after his freshman year of college, he’s wanted to become a CPA work
    7·1 answer
  • Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products. The company cannot compete with Dia
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!