Question: Problem: An airline offers two fare classes for coach seats on a particular flight: Full fare class at $450/ticket and Discount fare class at $150/ticket. There are 230 coach seats on the aircraft. Demand for Full-fare tickets has a mean of 45, a standard deviation of 16, and we assume it follows a Normal distribution.

Discount fare customers must buy their tickets three weeks in advance, and normally, these tickets sell out.

1. How many seats (Q) would you protect for the Full-fare class customers? What is the expected revenue on this flight? (Assume ample demand for Discount tickets.)
   The forecast for Discount tickets has dropped. It is now assumed that the demand for this class is normally distributed with mean 150 tickets and standard deviation 30 tickets.
2. How many seats (Q) should the airline protect for Full-fare customers now? Why? What are the expected revenue on this flight?

Price: $2.99

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Deliverable: Word Document