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A comment on Southwest operational meltdown as hundreds of flights canceled or delayed. Parent comment

Re:Southwest operational meltdown as hundreds of flights can... by nradov on Monday October 11, 2021 @10:19AM (#28828605)
Sure that's the theory. But how do you accurately price in risk for rare events? The uncertainty is so large that any price you set is effectively just a guess.
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Re:Southwest operational meltdown as hundreds of flights can... by Zigurd on Monday October 11, 2021 @10:25AM (#28828665)
Insurance and derivatives are supposed to find prices for rare events. And if an organization can't insure or securitize a risk it should make them think real hard about mitigation.
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Re:Southwest operational meltdown as hundreds of flights can... by krageon on Monday October 11, 2021 @11:09AM (#28829194)
You guess based on data and do your best, that is more or less how all expert opinion works. An actuarial table also doesn't tell you anything about what will happen, but it allows you to do your best.
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