Below Is a Decision Tree for the Airline Revenue Management

question 28

Multiple Choice

Below is a decision tree for the airline revenue management.Create a one-way data table to answer the following question(s) .
-If the probability of selling the full-fare ticket is 0.50,what is the expected value of the ticket?

• A)$210
• B)$300
• C)$480
• D)$420

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Definitions:

Transport Cost

Expenses associated with the movement of goods or people from one location to another.

Land Rent

Payment made for the use of land, typically in agriculture, business, or as part of real estate transactions.

Marginal Costs

The added expense resulting from making one more unit of a product or service.

Corn Yields

The amount of harvested corn produced per unit of land, often measured in bushels per acre.