Explore BrainMass
Share

Explore BrainMass

    Applications of Probability in Business Decisions

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    In what situations might you use probability as a manager to approach business-related problems? What are the advantages to using probability concepts in business decisions? Are there any disadvantages or possible pitfalls to avoid in using probability in business?

    © BrainMass Inc. brainmass.com October 10, 2019, 5:16 am ad1c9bdddf
    https://brainmass.com/business/business-math/applications-probability-business-decisions-499411

    Solution Preview

    Business managers can use probability in a variety of ways to approach business-related problems.

    For example, if economists forecast a 30% chance that an event will occur a business manager can use that in his planning for project payoffs. For example:

    If Event occurs, loss will be $1,000
    If Event does not occur, profit will be $2,500

    Since economists forecast only a 30% chance of the Event occurring, the manager can use this ...

    Solution Summary

    Application of probability business decisions are examined.

    $2.19