An Airline Is Considering Adding a Flight from Chicago to Sioux

question 30

Multiple Choice

An airline is considering adding a flight from Chicago to Sioux Falls.Total cost of the flight is $5,500.Variable cost is $2,000.Revenue from the flight is expected to be $3,000.Should the flight be added?

• A)No, the revenue ($3,000) is below the cost ($5,500.)
• B)No, the addition to profit is very small and not worth the effort.
• C)Yes, profit increases by $1,000 ($3,000 - $2,000.)
• D)Yes, profit increases by $3,000.

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Definitions:

Four Tests

A set of criteria or checks used to evaluate the validity or reliability of a concept, argument, or piece of evidence.

Comparative Inferences

The process of deducing conclusions by examining the similarities or differences between two or more objects, scenarios, or datasets.

Comprehensiveness

Refers to the quality of including all or nearly all elements or aspects of something.

Comparative Reasoning

Evaluating two or more objects, ideas, or situations to identify similarities and differences.