Question

The price of travelling ticket is affected by: season, the seat option (regular, extra forward space, wide seat), seat location (aisle, middle, window), services provided (monitor, food & drink), refund option (non-refundable, partial refund, total refund)

What is the outcome goal of the above example?

What are the parameters that affect on the output goal?

Using the above example, explain one scenario when:

a)  the sensitivity of the outcome to one parameter is high

b)  the sensitivity of the outcome to one parameter is low

c)  the sensitivity of the outcome to multiple parameters is high

Answer 1

From what I understand the outcome goal must be to understand the different factors affecting the ticket price.

a) The main reason must be because of the season as there are some places where people generally travel in a particular season for example, people travel to GOA mostly in December so the ticket prices are high and the same goes for the hill stations. So season is one important parameter.

b) It should be the seat location as ticket prices are generally not dependent on the type of seat, as most people do not have any preference on their seat, except for the exception of some older people. But still the type of seat affect the ticket prices the minimum.

c) The season and the services provided are two major parameters which affects tickect prices the most I have already given an example for the season and as for the services provided, food and drinks will surely increase the ticket price.