Use the Table Below to Answer the Following Question(s)

question 28

Multiple Choice

Use the table below to answer the following question(s) .
The Atlas Movies Theater has repriced their ticket rates to maximize revenues.They have three classes of tickets: Classic, Silver, and Gold.The table below provides information on the average ticket sales, revenue and price elasticity on demand.They have a total seating capacity of 300.The table also provides the new price for the three classes obtained using Solver.

Assume the distributions of elasticities for three classes of tickets are uniform with minimum and maximum values equal to 75% and 125% of their estimated values, respectively.Under this assumption, use Monte Carlo simulation to answer the following questions.The model is simulated for 10,000 trials.
-What is the probability that more than 300 tickets will be sold?

• A)approximately 0.75
• B)approximately 0.40
• C)approximately 0.60
• D)approximately 0.50

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Definitions:

Arbitration

Process of intergroup conflict resolution in which a neutral third party is invited to impose a mutually binding settlement.

Bargaining

Process of intergroup conflict resolution where representatives reach agreement through direct negotiation.

Primitive Behaviour

Actions or reactions that are considered to be based on early or basic human instincts rather than learned or civilized responses.

Le Bon

Referring to Gustave Le Bon, a French social psychologist known for his work on crowd psychology and the study of mob behavior in the late 19th and early 20th centuries.