An indoor tennis centre has five courts which are booked by members of the public, usually over the telephone.
Demand for each hour in the peak-period hours, i.e. 4pm to 11pm, has been found to rise to a Poisson distribution with a mean of 9 if the tennis centre continues to charge its off-peak rate of £6 per court per hour. The centre management is therefore considering setting the price at a higher level during the peak period. In fact they have experimented with different prices and have found the following demand levels:
Price (per ct per hr) | Mean Hourly Demand
(i) What proportion of demand would be turned away if the peak-period price is set at the current off-peak price of £6 per court per hour, and what hourly income would be generated?
(ii) At what level should they set the peak-period price in order to maximise the average hourly income during the peak period?
I don't know What method to use, to solve it...
Poisson distribution, question. I am Panicing Watch
- Thread Starter
- 13-11-2008 22:32
- 14-11-2008 12:04
draw a poisson curve with peak the mean, draw a line through it at 5. find area under curve.