The goal of optimization in revenue management is to identify a tactic
A)using forecasts of customer behavior that will be most effective.
B)using linear regression that will maximize revenue.
C)using linear regression that will minimize cost.
D)that will not have to be altered.

Question

Quizplus · Accepted Answer

The goal of optimization in revenue management is to identify a tactic that maximizes revenue by using forecasts of customer behavior. Linear regression may be one of the methods used in this process, but the primary focus is on maximizing revenue, not minimizing cost. The tactic may need to be altered as market conditions and consumer behavior change, so option D is incorrect.

The Goal of Optimization in Revenue Management Is to Identify