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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 C14 of the worksheet to determine the Cost of Bumping Passengers?
Relative Homogeneity Effect
The tendency to perceive members of an out-group as more similar to each other than members of the in-group, often leading to stereotyping.
Ingroup Members
Individuals who belong to the same group or category as one perceives oneself, often feeling a sense of solidarity and common identity with them.
Outgroup Members
Individuals who are perceived as not belonging to one's own group, often leading to distinction and bias against them.
Accentuation Effect
Overestimation of similarities among people within a category and dissimilarities between people from different categories.
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