Reference no: EM133093681

Probabilities can be used in almost every business situation.

• Restaurants. It is common to hear the failure of a restaurant. The question to be answered would be how likely would your restaurant succeed? In a generic idea, very unlikely. However, if there is no pizza restaurant in town and hasnt had one in a while, there is a good probability that this restautant will be successful.
• Insurance. Insurance is based of fof several factors. The probability of you getting into a car wreck, your car being stolen, or the probability of something happening will be factored into the insurance rate. For example, your car insurance will be cheaper in a better city/neighborhood that has low car thefts and crime.
• Stocks are also a good example of probabilitiy. Stocks are sometimes based off of trends and outside factors but there are stocks that continue to grow (Amazon and Netflix). What is the likelihood of buying an already successful stock from an already prominent company and making a profit? That similar scenario can be applied to any stock - what is the likelihood of making a profit off of a stock? Even though there is statistical data for stocks, it is also important to consider the probability of how long that stock will exist and be successful. That is another question to answer. Blockbuster was once in its prime but Netflix put Blockbuster out of business,

Probability can be simple or complex and its all based on that needs to be answered. From a business perspective, you must determine what you are looking for. 

What do you think about these methods?