Exhibit 12.4. The Following Questions Use the Information Below

question 66

Multiple Choice

Exhibit 12.4.
The following questions use the information below.
The manager of a Washington, DC sightseeing tour company is concerned about overbooking for one of his bus tours. The bus has 15 seats but sometimes there are empty seats. His records show that about 20% of ticket holders do not show up for their tour. Tickets cost $10 and are non-refundable. If the manager overbooks the tour and more than 15 passengers show up, some of them will be bumped to a later tour. This bumping costs the company $25 in various expenses to keep the customer happy until the next tour. The manager wants to see what happens to profits if 18 reservations are accepted.
-Using the information in Exhibit 12.4, what formula should go in cell C13 of the worksheet to determine the Opportunity Cost of Empty Seats?

• A) =C5*MAX(C4,C10)
• B) =C5*MAX(C4,0)
• C) =MAX(C4-C10,0)
• D) =C5*MAX(C4-C10,0)

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Definitions:

Iconic Memory

A type of visual memory that holds a brief, fleeting replica of an image after the original stimulus is gone.

Effortful Processing

The active and conscious encoding of information into the memory system, which often requires attention and effort.

Procedural Memory

A type of long-term memory that involves the unconscious memory of how to perform tasks, such as riding a bike or typing, without consciously thinking about them.

Shallow Processing

A type of cognitive processing in which a person fails to engage deeply with the information, focusing on superficial aspects like the appearance or sound of words rather than their meanings.