"Running Head: Probability Techniques in BusinessThe Benefits of Probability Techniques in Business CareerNameInstitutionThe Benefits Of Probability Techniques In Business Career2The Benefits of Probability Techniques in Business CareerProbability is the measure of likelihood or chance for the occurrence of an event. It is theratio of the favorable cases to the total possible cases. Probability takes a value between zero andone. A sure event has a likelihood of one while an impossible event has probability zero(Jaynes,2003).Risk Evaluation Probability techniques are the abstract ideas focused on identifying the degree of riskinvolved in a business decision-making. The level of the difference of the potential outcomefrom the benchmarked expectation defines the risk. The probability calculations are based on therandom or the entire data sample. For example, a random sample from the target market is usedto forecast on the demands of a consumer. Decision MakingThe classical approach can be used in business decision making when the likelihood ofthe outcomes is not known. The occurrence of these events can be assumed to be likely equal andthe risk of occurrence considered. Sales Forecasting The future levels of sales can be predicted using probability distributions. The relativefrequency approach involves the use of past observations to make predictions about the future.The ratio of the frequency an event has occurred to the total number of opportunities for the "