Probability

Probability

•  Life expectation of a person
•  Getting through an examination
•  Victory of an election
•  Possibility of rains tomorrow

The outcomes of many occurrences take place in our day-to-day life situations cannot be expressed certainly, no any events can be expressed with a perfect certain and further that decision making is convenient, if the outcome of each and every occurrence is certain.       
There are uncertainties in business field as well as in occurrences come across in real time situations.

•  Possible demand for a newly introduced product to market

•  Strategic movements of competitors in a business

•  Selling all the items produced to the market during the forthcoming quarter

Measuring the uncertainty in terms of a numerical value is essential in order to make optimal decisions.The technique of measuring uncertainty in terms of numerical value is 'Probability'.
µ  Probability of any event can be a value between 0 and +1.
µ  If the possibility of an event is certain the probability of that event is ‘1’.
µ  The probability of an impossible event is ‘0’.
µ  Hence the probability of an uncertain event is a value between 0 and 1.