***READ And follow all directions*** Please answer questions with the answers an
ID: 3375295 • Letter: #
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***READ And follow all directions***Please answer questions with the answers and put the answers in the picture where they belong
Answers only Please don’t make it confusing Please be clear Please write or type neatly South Central Airlines operates a commuter flight between Atlanta and Charlotte. The plane holds 26 passengers, and the airline makes a $97 profit on each passenger on the flight. When South Central takes 24 reservations for the flight, experience has shown that, on average, two passengers do not show up. As a result, with 26 reservations, South Central is averaging 24 passengers with a profit of 24(97 = $2,328 per night. The airline operations office has asked for an evaluation of an overbooking strategy in which the airline would accept 28 reservations even though the airplane holds only 26 passengers. The probability distribution for the number of passengers showing up when 28 reservations are accepted is as follows: Passenger Showing Up 24 25 26 27 28 Probability 0.05 0.25 0.50 0.15 0.05 The airline will receive a profit of $97 for each passenger on the fight, up to the capaciy of 26 passengers. The airline wil also incur a cost for aný passenger denied seating on the flight. This cost covers added expenses of rescheduling the passenger as well as loss af goodwill, estimated to be $120 per passenger. Develop a worksheet model that results to compute the profit for each flight. a. Does your simulation recommend the overbooking strategy? of the overbooking system. Simulate the number of passengers showing up for each of s00 flights by using the VLOOKUP function. Use the What is the mean profit per flight if overbooking is implemented? Round your answer to the nearest Over s
Explanation / Answer
Answer
Part a)
Yes, the simulation recommend overbooking strategy.
Part b)
The average profit is 2460 , which is more than the current average profit.
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