To evaluate the effect on capacity reallocations of advance sales data indicating mean demand of 55 rather than 60 during a slow travel week for business class.
Explanation of Solution
Following are the effects if mean value is assumed to be 55 instead of 60:
The mean value has been assumed to be 55. Thus optimal level can be calculated in the following way:
Optimal level of seats for business class
Now,
(63-58)= 5 extra will be allocated to the non business class.
Introduction:A data set's average absolute deviation, or mean absolute deviation, is the sum of the absolute deviations from the center. It is a mathematical overview of dispersion or variability.
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Chapter 14A Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning