[Appendix; Advanced Material] If airlines found that the number of no-shows starts to increase,then its policy for optimal overbooking would tend to:
A) make them reduce the amount of overbooking.
B) cause them to increase the amount of overbooking.
C) let them keep the same amount of overbooking.

Question

Quizplus · Accepted Answer

When airlines notice an increase in no-shows, they may opt to increase overbooking to maximize the utilization of their flights. This strategy helps ensure that flights are as full as possible, compensating for the higher number of passengers who do not show up.

[Appendix; Advanced Material] If Airlines Found That the Number of No-Shows