Suppose there are 100 seats on a flight from Hong Kong to Seoul. The number of no-shows is normally distributed with mean 20 and
standard deviation 5. The price of an airline ticket is p. The cost per
bumped customer is c. Assume c > p. Choose all of the statements
that are true.

a. According to a new prediction from the marketing department, the
number of no-shows is indeed normally distributed with mean 20 andstandard deviation 10. In this case, the optimal overbooking level islower than that in the original scenario.

b. The airline should sell more than 120 tickets.

c. If the airline makes an arrangement with a partner airline, so that it canreduce the cost for bumped customers by half, then the optimaloverbooking level decreases.

d. If the price of the ticket increases, the optimal overbooking level
increases.

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum. should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?