Prior to developing an overbooking policy, a business must
A) Determine the number of customers who will tolerate being bumped.
B) Determine the probability of there being alternatives for customers who are bumped
C) Determine the probability for each possible no-show condition
D) The expected cost of each no-show condition

Question

Quizplus · Accepted Answer

Before implementing an overbooking policy, a business must understand the likelihood of no-shows to optimize the number of overbooked reservations, ensuring they can accommodate as many customers as possible without excessive inconvenience.

Prior to Developing an Overbooking Policy, a Business Must