Business Analytics (2nd Edition)
Business Analytics (2nd Edition)
2nd Edition
ISBN: 9780321997821
Author: James R. Evans
Publisher: PEARSON
bartleby

Concept explainers

bartleby

Videos

Textbook Question
Book Icon
Chapter 1, Problem 16PE

The demand for airline travel is quite sensitive to price. Typically, there is an inverse relationship between demand and price, when price decreases, demand increases and vice versa. One major airline has found that when the price (P) for a round trip between Chicago and Los Angeles is $600, the demand (D) is 500 passengers per day. When the price is reduced to $400, demand is 1,200 passengers per day

  1. Plot these points on a coordinate system and develop a linear model that relates demand to price.
  2. Develop a prescriptive model that will determine what price to charge to maximize the total revenue.
  3. By trial and error, can you find the optimal solution that maximizes total revenue?

Blurred answer
Knowledge Booster
Background pattern image
Statistics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Text book image
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Text book image
Algebra for College Students
Algebra
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Cengage Learning
Text book image
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Text book image
College Algebra
Algebra
ISBN:9781337282291
Author:Ron Larson
Publisher:Cengage Learning
Text book image
Intermediate Algebra
Algebra
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Cengage Learning
What is a Linear Equation in One Variable?; Author: Don't Memorise;https://www.youtube.com/watch?v=lDOYdBgtnjY;License: Standard YouTube License, CC-BY
Linear Equation | Solving Linear Equations | What is Linear Equation in one variable ?; Author: Najam Academy;https://www.youtube.com/watch?v=tHm3X_Ta_iE;License: Standard YouTube License, CC-BY