- +44 141 628 6080
- info@tutorsglobe.com

Evaluate the cost of free round-trip flight

Discuss the below problem:

Q: A popular Cheap-Ticket flight from New York (LGA) to Dallas (DFW) costs $120. From the past history, the airline knows that an average of 10 customers (with standard deviation of 4) cancel their reservation. If the flight is overbooked, the airline has a policy to board customer on the next available flight and give the person a free round-trip ticket on a future flight. The cost of free round-trip flight averages $180. By how many should this ‘Cheap-Ticket' airline overbook the flight (sale extra ticket)?

Step 1: Find the P-value (probability):

Step 2: Find Z-value [Use Excel NORMSINV( P-value)]

Step 3: Find X-value (µ and s known) from the equation: z=(X-µ)/s

Expected delivery within 24 Hours

18,76,764

Questions

Asked

21,311

Experts

9,67,568

Questions

Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment
## Q : Compute both the direct labor cost and the direct materials

Compute both the direct labor cost and the direct materials cost per equivalent unit.