Mat 540 Week 2 Discussion 2

How does the science of probability affect decisions? Why? Probability concepts are important in everyday reasoning about chance and uncertainty, in the formal methods of inductive logic and scientific reasoning, and in philosophical arguments of many different kinds. Probabilities are given a value between 0 and 1. An event with a probability of 1 can be considered a certainty. When looking at a decision, we automatically think if I do this, this will happen or if I do it the other way something different will happen. The science of probability advances decision making abilities with random variable and events. It obtains the best decision based on all of the possibilities available. The company use science of probability to maximize and minimizes their losses. As well, science of probability helps the company to measure the available outputs from their inputs. Taylor, B. W. (2011). Introduction to Management Science (Custom ed.). Upper Saddle River, New Jersey: Pearson Learning Solutions