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American Airlines Revenue Management Interview Question

I interviewed in Fort Worth, TX and was asked:
"How much money did residents of DFW spend on gasoline in 2008?"
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Answer

Part of a Revenue Management Interview Review - one of 388 American Airlines Interview Reviews

Answers & Comments

1
of 3
votes
They payed what they thought it was worth to perform the tasks at hand.
- Darrell on Jan 10, 2012
3
of 5
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about $3.50 per gallon
- gdf on Jan 10, 2012
1
of 3
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It depends on many factors. For E.G.
1. How many miles each user is driving.
2. What kind of vehicle users drive around?
3. How expensive is gas in the area.
- Mukesh on Jan 10, 2012
2
of 4
votes
Enough to pay for the gasoline they needed.
- DibblesMcPhee on Jan 10, 2012
4
of 5
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Me: More than what they used to.
- Paul on Jan 10, 2012
0
of 1
vote
Too much?
- vuvuzela on Jan 10, 2012
2
of 3
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They're trying to test your estimation & reasoning skills. Even if you're wrong, estimate the population of Dallas, the proportion of regular drivers, the average number of miles driven per day * 365, the average mpg (which would be quite high in Dallas given the number of big cars there) and the cost per gallon. Before the interview, practice estimation skills in general in various situations.
- OC on Jan 11, 2012
2
of 2
votes
They're trying to test your estimation & reasoning skills. Even if you're wrong, estimate the population of Dallas, the proportion of regular drivers, the average number of miles driven per day * 365, the average mpg (which would be quite high in Dallas given the number of big cars there) and the cost per gallon. Before the interview, practice estimation skills in general in various situations.
- OC on Jan 11, 2012
4
of 4
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DFW is an airport code not a city code. How many people live in the airport? Zero. How much did they spend on gasoline? Zero.
- Rene on Jan 11, 2012
0
of 1
vote
Less than the people in Chicago.
- Lauren on Jan 11, 2012
2
of 2
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In addition to gas needed for personal transportation, there is also the cost of gas for home use, and any gas used by municipalities or other publicly-funded services. That said, I do believe the desired response would include guestimating and showing your reasoning for each part of the answer.
- ThatsMe on Jan 14, 2012
0
of 1
vote
More than they had to. I'm sure there are plenty of ways to reduce consumption and therefore cost without sacrificing any functionality. The resulting environmental benefits notwithstanding.
- Vlad on Jan 29, 2012
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0
of 0
votes
Depends. Was this vehicle gasoline or airplane gasoline? I'm assuming because I'm interviewing for American Airlines, that you're not referring to the assumed car gasoline. Since 27 Million people flew from DFW in 2008, and the average domestic airfare in 2008 was $350, calculating that gas accounts for about 35% of airline ticket price, then the average money residents of DFW spent on gasoline in 2008 was $330,750,000.

When do I start?
- HB on Mar 7, 2012

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