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PROBABILITY & STATISTICS

MCASEMESTER-IIPROBABILITY &STATISTICSmca-52301 PROBABILITYINTRODUCTION TO PROBABILITYM anagers need to cope with uncertainty in many decisionmaking situations. For example, you as a manager may assumethat the volume of sales in the successive year is known exactly toyou. This is not true because you know roughly what the next yearsales will be. But you cannot give the exact number. There is someuncertainty. Concepts of PROBABILITY will help you to measureuncertainty and perform associated analyses. This unit provides theconceptual framework of PROBABILITY and the various probabilityrules that are essential in business objectives:After reading this unit, you will be able to: Appreciate the use of PROBABILITY in decision making Explain the types of PROBABILITY Define and use the various rules of PROBABILITY depending onthe probl

Basic Probability The probability of a sample point is a measure of the likelihood that the sample point will occur. Probability of a Sample Point By convention, statisticians have agreed on the following rules. The probability of any sample point can range from 0 to 1. The sum of probabilities of all sample points in a sample space is equal to 1.

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