Use the information below to answer the following question(s). Below is a decision tree for the airline revenue management. Create a one-way table and answer the following questions.
-If the probability of selling the full-fare ticket is 0.80, what is the expected value of the ticket?
A) $ 442.50
B) $ 472.00
C) $ 501.50
D) $ 531.00

Question

Use the information below to answer the following question(s). Below is a decision tree for the airline revenue management.  Create a one-way table and answer the following questions.
-If the probability of selling the full-fare ticket is 0.80, what is the expected value of the ticket?
A) $ 442.50 
B) $ 472.00 
C) $ 501.50 
D) $ 531.00

Quizplus · Accepted Answer

The expected value is calculated by multiplying the probability of selling the ticket by the ticket price. Assuming the ticket price is $590 (since 0.80 * $590 = $472), the expected value is $472.00.

Use the Information Below to Answer the Following Question(s)