Service Management 7th Edition by James Fitzsimmons, Mona Fitzsimmons

Exercise 7

Reconsider Example 11.3 (Blackjack Airline). After initial success with the Los Angeles-to-Las Vegas route, Blackjack Airline's demand for full-fare tickets has increased to an average of 75, with the standard deviation remaining at 15. This early experience has allowed Blackjack to make a better estimate of the percentage of discount-seeking passengers, which appears to be 80 percent. Consequently, Blackjack has decided to raise all ticket prices by $10. Under these new conditions, how many full-fare seats should Blackjack reserve?