You need to upload your spreadsheet after you finish. You can also include a one page report to summarize your answers. Question 1. Suppose you are in charge of selling tickets for an airline company. There are 50 seats available on the plane. Ticket price is $200, fully paid at the time of purchase. If a consumer cancels the reservation, she can only get $ 100 in refund. On the other hand, if a consumer cannot get a seat, the airline must compensate the consumer and make arrangements to help her get to her destination. The average cost of dealing with a consumer without a seat is $250. Using the historical data, you know the chance of every customer showing up is 10%, 20% chance there is one cncellation, 30% chance to have 2 cancellations, 20% chance to have 3 cancellations, 10% chance to have 4 cancellations, and 10% chance to have 5 cancellations. Use the overselling spreadsheet as an example to find out the optimal number of seats you should sell. You need to submit your spreadsheet. Please also keep your spreadsheet neat, in a form that is presentable to your supervisors.

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