Find the expected value of an airline ticket to the airline company based on the way...
Find the expected value of an airline ticket to the airline company based on the way it prices seats. Suppose there are 160 seats on an airliner: 30 are in first class and are priced at $1,200; 45 are unrestricted coach and are priced at $750; 81 are restricted discount tickets and are priced at $320; and 4 are free for frequent flier awards. Assuming the aircraft is sold out, what is the expected value of a ticket to the airline?
Homework Answers
expected value of a ticket to the airline
=(30*1200+45*750+81*320+4*0)/160
=597.9375
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Find the expected value of an airline ticket to the airline
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After reviewing the entire case, determine Wright’s firm value,
intrinsic share price, and intrinsic price-to-earnings ratio for
both West Airlines and jetGreen Airlines. Then compose a one-page
memo from Orville Wright to Amelia Earhart on December 31, 2018.
State your investment recommendation and your rationale for making
it.
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and intrinsic price-to-earnings ratio for both West Airlines and
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do customers have of airlines such as United and How did these
expectations develop over time?
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failure?
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