You are in charge of the ticket pricing for a music festival in Los Angeles. The regular tickets are priced at $200 and the discounted tickets are priced at $75. The festival organizers estimate that the demand for regular tickets is between 31 and 80, all numbers equally likely. You wish to maximize the revenue.
a) There are 61 seats left. Should you sell a discounted ticket? Why?
b) There are 100 seats left. How many seats should you reserve at the regular price?