Can and how would you apply basic probability concepts to facilitate business decision making? What is the difference between discrete and continuous probability distributions? How would you apply the normal distribution to facilitate business decision making?© BrainMass Inc. brainmass.com October 24, 2018, 10:18 pm ad1c9bdddf
For your convenience, I have attached a formatted MS Word file containing the text below. I have also attached alinkg to the National Science Foundation website. Please review the terminology for discrete and continuous probability contained on the website, as well as the examples posted there in order to become better acquainted with the terms that you will be using going forward. Statistics is really not that difficult. But like any other science, you must come to the know the language that it uses.
Can and how would you apply basic probability concepts to facilitate business decision making?
Because uncertainty plays an important role in our professional as well as our daily lives, basic probability, which attempts to determine "the chance of something happening," is an extremely useful tool to facilitate the business decision process (Brooks, 2005). For example, an investment counselor attempting to determine which of two stocks is most likely to deliver the better growth over the coming year, will use probability to increase his or her likelihood of making the proper choice between the two. Engineers frequently use probability during the product design process to reduce the likelihood of breakdowns or product failure. Likewise, marketers use probability to reduce uncertainty about the effectiveness of an ad campaign or the eventual success of a new product.
Through the use of probability, aspects of each of the aforementioned decisions can be measured (quantified) for how likely an event is most likely to occur, with the probability of the occurrence of a particular event always being a number between zero and 100%. With such information at their disposal, business decision makers have an invaluable tool which will allow them to minimize risk, maximize their opportunities for success, as well as make better informed and wiser decisions in this world chock full of uncertainties.
What is the difference between discrete and continuous probability distributions?
The major conceptual difference between discrete and continuous ...
The attached APA formatted MS Word file contains a discussion on discrete and continuous probability distributions, as well as the aspects of a normal distibution.
Probability Concepts and Discussion
1. Define probability and explain its three perspectives. Provide an example of each.
2. Explain the concept of mutually exclusive events. How do you compute the probability P(A or B) when A and B are, and are not, mutually exclusive.
3. What is the standard error of the mean? How does it relate to the standard deviation of the population from which a sample is taken?
4. Describe the difference between subjective and probabilistic sampling methods. What are the advantages and disadvantages and disadvantages of each?
5. How does the t-distribution differ from the standard normal distribution?
6. Discuss how confidence intervals can help in making decisions. Provide some examples.