Demand forecast for full-price tickets

(Annenberg) Ron, the director at the Annenberg Center, is planning his pricing strategy for a musical to be held in a 100-seat theater. He sets the full price at $80 and estimates demand at this price to be normally distributed with mean 40 and standard deviation 30. Ron also decides to offer student-only advance sale tickets discounted 50 percent off the full price. Demand for the discounted student-only tickets is usually abundant and occurs well before full-price ticket sales.

a. Suppose Ron sets a 50-seat booking limit for the student-only tickets. What is the number of full-price tickets that Ron expects to sell? [18.2]

Don't use plagiarized sources. Get Your Custom Essay on
Demand forecast for full-price tickets
Just from $13/Page
Order Essay

b. Based on a review of the show in another city, Ron updates his demand forecast for full-price tickets to be normal with mean 60 and standard deviation 40, but he does not change the prices. What is the optimal protection level for full-price seats? [18.2]

c. Ron realizes that having many empty seats negatively affects the attendees’ value from the show. Hence, he decides to change the discount given on student-only tickets from 50 percent off the full price to 55 percent off the full price and he continues to set his protection level optimally. (The demand forecast for full-price tickets remains as in b, normal with mean 60 and standard deviation 40.) How will this change in the studentonly discount price affect the expected number of empty seats? (Will they increase, decrease, or remain the same, or is it not possible to determine what will happen?) [18.2]

d. Ron knows that on average eight seats (Poisson distributed) remain empty due to noshows. Ron also estimates that it is 10 times more costly for him to have one more attendee than seats relative to having one empty seat in the theater. What is the maximum number of seats to sell in excess of capacity?

The Quizlet
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Us

Exemplary Academic Writing Service

At TheQuizlet.com, you are guaranteed of quality service from our professional writers. We maintain consistent communication with customers after placing an order to avoid missing anything that may compromise the quality of delivered work.

Top Writers

Our hiring process is rigorous to maintain the desired quality that has become the core of our business. We expose potential writers to an uncompromising selection process that enables TheQuizlet to pick the best out of the rest. TheQuizlet boasts of a competent team of writers, editors, and professors who work towards accomplishing your goals.

Plagiarism-Free Papers

TheQuizlet has an in-house plagiarism software that lowers the probability of delivering plagiarized papers to our clients. Referencing is guided by the format specified by a customer when placing an order. Our writers are conversant with all referencing formats that include APA, MLA, Chicago, Harvard, and Vancouver among others.

24/7 Customer Support

We understand the importance of effective communication and as such, TheQuizlet has a dedicated customer support department that responds to all client needs. You can easily contact our team through a chat window at the bottom left corner. Additionally, clients can reach us through support’s email or a telephone number available on our contact page. Feel free to contact us at any time and our team of experts will solve all your problems.

Swift Delivery and 100% Money-back Guarantee

When placing an order, ensure that you specify the correct deadline to help our writers work around the provided timeline. At TheQuizlet, we deliver our tasks before the projected deadline to give time for the customer to proofread the work before submission. In the event we cannot deliver a paper on time, we initiate contact with the client to renegotiate a new deadline.

Unlimited and Free Revisions

We urge all our customers to request for a revision whenever they identify a need to amend the paper. Since we understand your concerns, TheQuizlet.com does not charge for revisions. Nonetheless, we encourage customers to be genuine when requesting for revisions.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

TheQuizlet is a one-stop shop for all your writing needs. We tackle each customer’s needs differently to improve the quality of outcomes and meet your expectations.

Essays

Academic Help Service

TheQuizlet is committed to delivering quality work on time to ensure our clients get the value for their money.

Admissions

Admission Essays and Professional Writing

Admission essays are personal, as opposed to other papers. For this reason, our team will request for any information that will enable them to deliver quality work, which allows you to convince the admissions board on why you should be granted the application.

Reviews

Editing and Proofreading

Our team comprises of qualified researchers, writers, and editors who go through the different papers before delivering them to our clients. Whether your paper is being written from scratch or you want it to be edited, you can trust TheQuizlet for all your needs.

Reviews

Revision Support

After receiving the final draft, you can request for a revision to incorporate various changes that are aligned with your expectations. All our papers are written in line with the latest writing standards.