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Probability Provides A Measurable And Quantifiable Indication Discussion Chapter

Probability provides a measurable and quantifiable indication of how likely a particular outcome is for an event or experiment. It is expressed as a numeric value between zero and one (inclusive), where an impossible event has a probability of zero and a certain event has a probability of one. Probability is conventionally written using the symbol P, and may be expressed as a percentage by multiplying P. By 100.

br /> The problem at hand related to 1995 gold prices can be set up and solved in the following way, with µ (mu) representing the mean, ? (sigma) the standard deviation, X the target value, and x1 and x2 defining the target value range.

µ = $383; = $12; x1=$394; x2=$399

The probability that the client's gold will be sold the next day is given by:

P (x1

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References

Annual Survey of Service Industries: Food Services and Drinking Places. (1999). Retrieved December 11, 2011, from http://www.statcan.gc.ca/cgi-bin/imdb/p2SV.pl?Function=getSurvey&SurvId=4704&SurvVer=0&SDDS=4704&InstaId=15525&InstaVer=3&lang=en&db=imdb&adm=8&dis=2

Arsham, H. (2011). Statistical Thinking for Managerial Decisions. Retrieved December 11, 2011, from http://home.ubalt.edu/ntsbarsh/Business-stat/opre504.htm

Dendane, A. (2011, April 3). Normal Distribution Probability Calculator. Retrieved December 11, 2011, from http://www.analyzemath.com/statistics/normal_calculator.html

Regression Basics For Business Analysis. (n.d.). Retrieved December 11, 2011, from http://www.investopedia.com/articles/financial-theory/09/regression-analysis-basics-business.asp#axzz1gE9DOgSJ
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