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

Linear programming, maximize z=3x1+2x2 subgect to the constraints x1+x2 x1-...

maximize z=3x1+2x2 subgect to the constraints x1+x2 x1-x2 x1,x2>_0

Examine the future sustainability of business, In your role as a Consultant...

In your role as a Consultant to a renowned organisation or institution, you have been asked to design and submit a research proposal to examine the future sustainability of its bus

Narrowing the research problem, NARROWING THE RESEARCH PROBLEM You h...

NARROWING THE RESEARCH PROBLEM You have read how from a general topic we have arrived at the definition of the problem to be studied. Now we have to narrow it down furthe

Critical evaluation of research, 1. What is the major problem or issue bein...

1. What is the major problem or issue being investigated? The interaction between service failure and online shop's readiness for service recovery and the resulting impact on custo

Sampling decision, Normal 0 false false false EN-IN X...

Normal 0 false false false EN-IN X-NONE X-NONE

Linear programing, Maximize6x1+8x2+5x3,st,labour3x1+4x2+5x3 =0 then brefly ...

Maximize6x1+8x2+5x3,st,labour3x1+4x2+5x3 =0 then brefly explain x1,x2,x3;term labour,metal&plastic;the160hours;x1,x2&x3>=0

Graphs of time series, Graphs of Time Series A time  series  is a sequ...

Graphs of Time Series A time  series  is a sequence of values  corresponding  to successive points  of time. Time  series  are  graphed  with time  on the x axis  and the  oth

Assumption for students test , Assumption for  students Test a.The p...

Assumption for  students Test a.The parent population from  which the samples is  drawn in normal. b.The sample observations  are random  i ,e the given  sample is  drawn

Simplex method, Solve the following Linear Programming Problem using Simple...

Solve the following Linear Programming Problem using Simplex method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Action phase - phase of operation research, The action phase consists of ...

The action phase consists of making recommendations for remedial action to those who first posed the problem and who control the operations directly. These recommendatio

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