TED-ED: Why do airlines sell too many tickets? - Nina Klietsch

The video discusses overbooking, a practice where businesses sell more than their capacity to optimize resources and increase profits. Airlines are a common example, using statistical models to predict no-shows and maximize revenue. The video explains the calculations involved, including the use of binomial distribution to assess probabilities and expected revenue. It also addresses the ethical concerns of overbooking, questioning the balance between practicality and ethics.

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