An Airline Reservation System First Asks Customers Whether They Want

question 42

Essay

An airline reservation system first asks customers whether they want to schedule a domestic or an international flight. Sixty-five percent of the reservations are for domestic flights. The time distribution of advance sales is also important, and it is given below. $$\begin{array}{l}\begin{array} { | l | c | l | } \hline{ \text { Domestic Flights } } \\\hline \text { Make Reservations } & \text { Rel. Freq. } & \text { RN Range } \\\hline \begin{array} { l } \text { Less than } 1 \text { week } \\\text { in advance }\end{array} & .25 & \\\hline \begin{array} { l } 1 \text { week to } 2 \text { months } \\\text { in advance }\end{array} & .35 & \\\hline \begin{array} { l } \text { Over } 2 \text { months } \\\text { in advance }\end{array} & .40 & \\\hline\end{array}\\\\\begin{array} { | l | c | c | } \hline { \text { International Flights } } \\\hline \text { Make Reservations } & \text { Rel. Freq. } & \text { RNRange } \\\hline \begin{array} { l } \text { Less than } 1 \text { week } \\\text { in advance }\end{array} & .12 & \\\hline \begin{array} { l } \text { 1 week to } 2 \text { months } \\\text { in advance }\end{array} & .35 & \\\hline \begin{array} { l } 2 \text { months to } 6 \text { months } \\\text { in advance }\end{array} & .40 & \\\hline \begin{array} { l } \text { Over } 6 \text { months } \\\text { In advance }\end{array} & .13 & \\\hline\end{array}\end{array}$$ $$\begin{array} { | l | c | l | } \hline { \text { Flight Type } } & \text { Rel. Freq. } & \text { RN Range } \\\hline \text { Domestic } & .65 & \\\hline \text { Interrational } & .35 & \\\hline\end{array}$$
a.Place the appropriate random number ranges in the tables above.
b.Set up and perform a simulation for three customers.Determine whether they want a domestic or international flight, and how far in advance the reservation is being made.Use random numbers from this list: .632 .715 .998 .671 .744 .021

Understand the concept of opportunity cost and how it varies between countries.

Recognize the benefits of trade between countries based on the principle of comparative advantage.

Analyze the concept of absolute advantage in the production of goods.

Interpret production possibility frontiers and their implications for trade and specialization.

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Definitions:

Standard Temperature

A baseline temperature used in scientific calculations, typically defined as 0°C or 273.15K.

Nonferrous Electrical Wire

A type of wire made from metals other than iron and steel, commonly used in electrical wiring due to its superior conductivity and resistance to corrosion.

MEGGER

A registered name by Biddle Industries. A high-voltage tester used for testing conductor insulation.

Metallic Conduit

Metallic conduit is a metal pipe or tubing designed to protect electrical wiring and cables, providing a secure pathway and shielding them from damage.