Since the US would receive the payment in either Euro or dollar, there will be a positive increase in balance of payments in US. It will be recorded as a credit entry in BOP. Hence it will be recorded as a positive entry into the current account
Suppose a german resident flies american airline. The airline ticket cost will be recorded in us...
Suppose that the probability that a person books an airline ticket using an online travel website is 0.79. For the question that follows, consider a sample of ten randomly selected people who recently booked an airline ticket. 1. What is the probability that exactly eight out of ten people used an online travel website when they booked their airline ticket? 2. What is the probability that at least nine out of ten people used an online travel website when they...
(a) Suppose that in the long run, 5% of ticket holders with a certain airline do not show up for their flight. If the airline sells 181 tickets for a flight that only has seats for 175 passengers, estimate the probability that everyone who shows up for this flight will get a seat. (Use the continuity correction). (b) The amount of time that a bank teller spends dealing with a random customer follows an exponential distribution with a mean of...
9) Suppose today that US nominal interest rate = 1% and German nominal interest rate = 6% and the current nominal exchange rate is E = €0.50/$. a. Use the uncovered interest party equation to compute the expected rate of appreciation of the US$ relative to the Euro. (Approximate form of the equation is fine.) b. Given your answer to a, what the expected future exchange rate? c. If you expect the US$ to depreciate relative to the Euro which...
This is an Airline overbooking problem where I need to find out how many tickets should the airline overbook to keep the profit maximum. Let us say that the number of seats on plane is 100. My revenue from each ticket is 5000 and cost per passenger is 100. The cost of refunding a passenger in case of overbooking is 10000. Probability of passenger showing up is 0.9.
3. Calculations: (20 points) An entrant airline started its operation in just one market in January 2006. In the first month, its monthly total cost was $5 million, the average ticket price was S120, and the t passengers served by this airline in this market was 45,000 in January fuel price, its monthly total cost in May 2006 went up 10% higher than in January 2006 In response to the 10% cost increase, this airline decided to increase its ticket...
Suppose the cost of flying a 200-seat plane for an airline is $100,000 and there are 10 empty seats on a flight. If the marginal cost of flying a passenger is $200 and a standby passenger is willing to pay $300, the airline should a. sell the ticket because the marginal benefit exceeds the marginal cost. D. not sell the ticket because the marginal benefit is less than the marginal cost c.not sell the ticket because the marginal benefit is...
JetBlue Airways is an American low-cost airline headquartered in New York City. Its main base is John F. Kennedy International Airport. JetBlue's revenue in 2002 was $777.5 million. By 2013, revenue had increased to $3,719.0 million What was the geometric mean annual increase for the period?
JetBlue Airways is an American low-cost airline headquartered in New York City. Its main base is John F. Kennedy International Airport. JetBlue's revenue in 2000 was $1,2401 million. By 2015, revenue had increased to $6,076.6 million What was the geometric mean annual increase for the period?
Exercise 8 Question Help Suppose the airline industry consisted of only two firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 50q. Assume that the demand curve for the industry is given by P = 190-Q and that each firm expects the other to behave as a Cournot competitor. Calculate the Cournot-Nash equilibrium for each firm, assuming that each chooses the output level that maximizes its profits when taking its rival's output as...
Suppose an article included the accompanying data on airline quality score and a ranking based on the number of passenger complaints per 100,000 passengers boarded. In the complaint ranking, a rank of 1 is best, corresponding to fewest complaints. Similarly, for the quality score, lower scores correspond to higher quality. Airline Passenger Complaint Rank Airline Quality Score Airtran 6 4 Alaska 2 3 American 8 7 Continental 7 5 Delta 12 8 Frontier 5 6 Hawaiian 3 Not rated JetBlue...