Probability values can be used in managerial decision making

Probability values can be used in managerial decision making to establish a product guarntee post a comment where you think probability could be used to help solve management questions/problems

Solution

There are multiple ways in which probability applications can be used to solve management problems.

Few of the areas are :

E.g. of each are given below:

1) To find the amount of defective products in an assembly line. The values of parameters can be tested against the approved/desired values vs the sample population values.

2) One can check if the advertisements lead to a rise in sales or not and if they do, which type of Ad would help in reaching out to the highest number of people statistically.

3) The probability of the fixed assets like huge machines breaking down can be calculated so as to be prepared in case of such an event happening. The probability values help in planning for the future.

These are some of the examples in which probability helps the management solve some of the questions/problems.