Question

Subject lest
Note:
OUR
A premium holiday destination provider overbooks its reservations by 1 passengers. It
means that in case, for total available booking of 5 seats, it would take reservations of 6
seats. The no show experience for the past 20 days is shown below
No-shows
Frequency
0
6
1
5
2
4.
4
2
3
Find the maximum implied overbooking opportunity loss Co if the revenue Cy from a
passenger is $20 K. Use the critical frassile formula (Newsvendor model)
(A) S54.20
(B) $46.67
(C) $47.67
(D) $50.30

Answer 1

Answer:

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Answer 2

Answer:

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