Below Is a Decision Tree for the Airline Revenue Management

question 75

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 0.85,what is the expected value of the ticket?

• A)$420
• B)$450
• C)$480
• D)$510

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Definitions:

Operating Cash Flow

The cash generated from the normal operations of a business, reflecting how well it generates cash to fund its operating expenses and working capital.

Noncash Deductions

Expenses that can reduce taxable income but don't involve an actual outlay of cash during the deducting period, such as depreciation.

Depreciation

Allocation of the cost of a tangible asset over its useful life, representing the decrease in the value of an asset due to use and age.

Selling Price

The amount of money for which a product or service is sold to customers.