Probability In Business

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Probability, conceptually, according to Mason and Lind (1993:163) "is a measure of the likelihood that an event in the future will happen; it can only assume a value between 0 and I inclusive". The above definition of probability is corroborated by Webster (1992:12) when he states "probability is the numerical likelihood, measured between, 0 and 1 that an uncertain event will occur". Before taking up other concepts of probability we must understand that events occur at random. Determinants of Success among Car Dealing Managers Why are some car dealer managers more successful than others? One possible factor is the university where the manager earned his or her degree of business administration .Suppose that a potential investor examined the …show more content…

The other three joint probabilities are defined similarly: The probability that a car dealer outperforms the market and its manager did not graduate from a top-20 Business Administration program is .06. The probability that a car dealer does not outperform the market and its manager graduated from a top-20 Business Administration program is .29. The probability that a car dealer does not outperform the market and its manager did not graduate from a top-20 Business Administration program is .54. To help make our task easier, we’ll use notation to represent the events. Let A1 = Fund manager graduated from a top-20 Business Administration program A2 = Fund manager did not graduate from a top-20 Business Administration program B1 = Fund outperforms the …show more content…

Some discrete probabilities are applied in production planning and control, while others are applied in lot acceptance sampling. The determination of number of defective units in a production run, the number of sales expected and number of students who took vacation jobs in a particular company is usually done using binomial probability. The determination of financial loss associated with a business policy may be done using

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