Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

2 -3 pages maximum on the advantages of using probability on a result occurring in making a business decision.

1 answer below »
2 -3 pages maximum on the advantages of using probability on a result occurring in making a business decision.
Answered Same Day Nov 28, 2020

Solution

Soumi answered on Nov 30 2020
152 Votes
Running Head: ADVANTAGES OF USING PROBABILITY IN DECISION MAKING    1
ADVANTAGES OF USING PROBABILITY IN DECISION MAKING     5
ADVANTAGES OF USING PROBABILITY ON A RESULT OCCURRING IN MAKING A BUSINESS DECISION
Advantages of Using Probability on a Result Occu
ing in Making a Business Decision
Probability is the chance of occu
ence of a particular event. The concept of probability is widely used across the globe. It helps in quantification of the chances of occu
ence of an event. In addition to that, it also help in estimating the chances of unfavourable circumstances. Thus, it helps in estimating the risk avoided with an event. This helps the managers in preparing strategies to mitigate the risk related to a key decision. According to views of Milazzo, Fa
ow, Ruffault and Fournier (2016), the optimisation of profit of a business depends on the manner, in which a business invests its finite resources. Investing requires analysis of the risk involved with different investments.
Using of probability as a calculation method helps the business is identifying as well as quantifying the risk involved. After due analysis of probabilities of loss and gain, probability models can be used to compute the investment combination that yields the maximum return. According to Benjamin and Cornell (2014), key business decisions can be taken by the management in various aspects such as customer service, competitive strategy, design of the product, sales strategy and various other areas. Sales forecasting is a major issue for every business. Majority of key decision depends on the estimated sales for the next period. A precise estimation of future sales is next to impossible.
However, as argued by Cohen (2016), the accuracy can be improved by use of probability distributions and statistical tools. Most of the statistical used use concepts of probability as their base. Use of scenario analysis based on a probability distribution can be helpful for the company in framing its possible...
SOLUTION.PDF
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Attach File