​ -Green Duck Airways Is Considering Adding a New Flight Between

question 143

Multiple Choice

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-Green Duck Airways is considering adding a new flight between Portland and Seattle.Revenue from the flight is expected to be $8,000.The total cost of the flight is $9,500, and the variable cost is $4,000.Should the airline add this flight?

• A)No, because the revenue of $8,000 is less than the cost of $9,500.
• B)No, the addition to profit is too small to devote the aircraft to the flight.
• C)Yes, profit increases by $4,000.
• D)Yes, profit increases by $2,500.

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Definitions:

Probability

A numerical range from 0 to 1 signifying the chances that an event will happen.

Psychiatrist's Theory

A hypothesis or set of hypotheses proposed by a psychiatrist that attempts to explain behavioral, psychological, or mental disorders.

Binomial Random Variable

A type of random variable that assumes only two possible outcomes, success or failure, in a series of independent trials with a constant probability of success.

Binomial Formula

A mathematical formula used to determine the probability of obtaining a fixed number of successes in a specific number of trials in a binomial experiment.