Important of probability - probability distributioin , Operation Research

Assignment Help:

Important of Probability

The  various practical applications  of the  theory  of probability are:

a.The fundamental  laws of statistic viz   the law  of statistical regularity and the law  of inertia  of large  numbers  are based on the  theory  of probability.

b.The very  inception of  the theory of probability  has been  to unlock the intricacies  of betting  and games. It  is now  possible  to decide whether  it is  worthwhile  betting  at a game. This  is done  by  calculating  the expected value of an action with  likely return  on each  of the  outcome given  the  chances  of success attached  to each  outcome.

c.Decision  theories  are based  on fundamental  laws  of probability  and expected value. the empirical probability  concept based on  experimental  tests provides  scope  for the  application  of probability  to real life  situations.

d.The use of probability  theory  is increasing in  economic decision making. The theory  of probability  is very  helpful  in situation of risk  and uncertainty. For example  a sales  manager  may  want to know  the probability  of doubling  the sales  of a particular product, management  may like  to know  the probability  of the  success of  a new product or of a plant at its new location etc. In  order  to  make proper decisions in the face of uncertainty we use the fundamental  laws   of probability.

e.The use of subjective probabilities  is made when  actual  measurement  is not  possible . it has  added  a new  dimension to the  theory  of probability. Such  subjective  probabilities can  however be revised  in the  light of experience by the  Bayesian  rule  of revisions of prior probability estimates.

 


Related Discussions:- Important of probability - probability distributioin

Data management, Data Management As your  research project progresses ...

Data Management As your  research project progresses you will  quickly  gather more  and more  data. These need  to be managed in such  a way that they  can be  accesses and

Techniques of observation method, Techniques of Observation Method Obs...

Techniques of Observation Method Observation always involves some interaction between respondent and researcher in which researcher has an opportunity to watch respondent fu

Usefulness of correlation - correlation regression analysis, Usefulness of ...

Usefulness of Correlation 1.Correlation  is very  useful  to economists  to study  the relationship  between  variables  like  price  and quantity  demanded. To businessmen it

Sope, sope of operations research in a detailed manner

sope of operations research in a detailed manner

Strategies and od intervention techniques, QUESTION 1 Change strategies...

QUESTION 1 Change strategies and OD intervention techniques follow from diagnosis. An inappropriate intervention due to a faulty diagnosis may be very costly to an organization

Modeling, Model building is the essence of the operations research approach...

Model building is the essence of the operations research approach? Discuss.

Linear programming, How do I set this problem up for Excel: A National Cred...

How do I set this problem up for Excel: A National Credit Union has $250,000 available to invest in a 12 month commitment. The money can be placed in Treasury notes yielding an 8%

Optimal assigment, #quesSix Operators are to be assigned to five jobs with ...

#quesSix Operators are to be assigned to five jobs with the cost of assignment in Rs. given in the matrix below. Determine the optimal assignment. Which operator will have no assig

Necessity of operations research, After having studied as to what is op...

After having studied as to what is operations research we shall now try to answers why its need has been felt by the industry. As already tainted out science of OR came

Problem, A paper mill produces two grades of paper viz., X and Y. Because o...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd