Can anyone please help me with this question? Suppose you are interested in the

Question

Can anyone please help me with this question?

Suppose you are interested in the number of tickets demanded for events in a certain arena with 20000 seats, which was in a recent season sold out 25% of the time. However only the number of actually sold tickets is measured. That is, whenever an event sells out, we know only that the actual number demanded is larger than the number of sold tickets. Make appropriate distributional assumptions and determine the mean and the standard deviation of the demand for seats, provided the average attendance (including sell-outs) was 18000. How do your estimates change if the average of 18000 applies only to events that were not sold out?

Explanation / Answer

a)

mean = 0.25 * 20,000 = 5000

SD = srqt ( 0.25*0.75 * 20,000 ) = 61.24

b)

mean = 18000 * 0.25 = 4500

SD = srqt ( 18000 * 0.25 * 0.75) = 58.09

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