Calculate the average fare increase for a family with a child associated with

SOLUTION AT Australian Expert Writers

Calculate the average fare increase for a family with a child associated with requiring a CRS for children younger than 2 years.
a. (3 points) Assuming that every family required to use a CRS would have to buy an extra ticket a full price, calculate the average annual addition cost of this requirement. This can be done by using the 2019 cost of a plane ticket (in 2019 constant dollars) for U.S. domestic travel from Bureau of Transportation Statistics found here https://www.bts.gov/content/annual-us-domestic-average-itinerary-fare-current-and-constant-dollars Report the average itinerary fare for 2019 (in 2019 constant dollars. Note that this is generally for a round trip ticket, so you will need to divide this by two to match your enplanement data. Then use your estimate of the number enplanements of children under 2 years to calculate the total opportunity cost of this mandate.
b. (3 points) Calculate the cost per life saved for this policy by dividing the additional fare cost of the policy by the number of lives saved.
c. (2 points) Assume an average family size for a family travelling with a child under 2 years of age is 3.2 individuals. Currently, that family only needs to buy an average of 2.2 tickets. What is the percent increase in the total cost that a family with a child under 2 years of age incurs by this policy if they now have to buy an average of 3.2 tickets?

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