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, Meaning of Linear programming problem and explanation o...

Meaning of Linear programming problem and explanation of graphical method of solving Linear Programming Problem

Question, i need many good and important question of operation research obo...

i need many good and important question of operation research obout dinamic programing and non-liner programing and integer orograming ....for study! thank you

Model building, model building is the essence of the operational research d...

model building is the essence of the operational research discuss

Linear Programing, A paper mill produces two grades of paper viz., X and Y....

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 grade Y paper i

requirements and characteristics of a good table , Requirements and Charac...

Requirements and Characteristics of a good table In the words  of Mr. Harry Jerome a good statistical table  is a triumph of ingenuity and  technique masterpiece of economy  o

Properties of normal distribution - probability distribution, Properties of...

Properties of Normal Distribution a.It is a continuous  probability  distribution having  parameters m and . b.The normal  curve is perfectly symmetrical about  the mean (

Formulation of relevant hypotheses and models, Tentative explanations when ...

Tentative explanations when formulated as propositions are called hypotheses. It is very important to state the hypothesis and its anticipated consequences before star

Linear programming, nass food produces to kinds of popular dark chocolate b...

nass food produces to kinds of popular dark chocolate bars.the banana and coffee. the banana bar costs 0.22 to make and sells of 0.35, where as the coffee bar costs 0.40 to make an

Purchasing, need of detailed information about the topic

need of detailed information about the topic

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