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https://heizerrenderom.wordpress.com/2015/02/09/om-in-the-news-a-crash-course-in-the-probability-of-a-disaster/

Question: Why probability such as these important in operations management? Can you give another example of the important probability?

Solution

Probability such as these are important in operations management.
A single case of disruption can cause a massive halt to the entire process of operations of the company. The fault can be a small issue in the main machine or a major issue to a small machine. Thus it is imperative to understand both the scenarios and work towards defining probabilities for both.

Operations are a company\'s heart. Any problem in the same can lead to a massive problem in the overall efficiency of working. The same can be related to the probability of disaster article.

Another example of probability can be given as:
1. The probability of returns in the stock market:
If a single person loses or does not make money or profits nobody cares - The probability for this is more, but if there is a sudden crash and a lot of people lose money it becomes a national and global phenomena.
The same thing applies similar to the air plane crash and heart attack victim.

Thus it is important to understand that the stark difference of probability will always be there irrespective of anything happening. It is the general human tendency to notice stuff that happens to all as a major issue and ignore a small event.