probability

1. Probability

2. Introduction
• Managers will have to cope with uncertainty in many decision
situations.
• Concepts of probability will help you measure uncertainty and
perform associated analyses that are essential in making effective
business decisions.

3. Probability Meaning and Concepts

4. Example

5. Solution

6. Definition of Probability

7. Three Extreme Values of Probability

8. Types of Probability

9. Mutually Exclusive Events

10. Independent Events

11. Rules of Probability

12. Rules of Probability

13. Rules of Addition - Example
From a pack of well-shuffled cards, a card is picked up at random.
1) What is the probability that the selected card is a King or a Queen?
2) What is the probability that the selected card is a King or a Diamond?

14. Solution (1)

15. Solution (2)

16. Multiplication Rule

17. Multiplication Rule

18. Multiplication Rule

19. Multiplication Rule

20. Marginal Probability

21. Problem

22. Solution

23. Bayes’ Theorem

24. Bayes’ Theorem

25. Problem

26. Solution

27. • Probability
• Types of Probability
• Mutually exclusive events
• Partially overlapping events
• Independent events
• Dependent events
• Rules of addition for mutually exclusive and partially overlapping events
• Rules of multiplication for independent and dependent events
• Contingency table
• Bayes’ theorem
• Probability distribution