1) What is the value of understanding probabilities? Give specific examples of applications.

Your response to the question is due by Thursday, October 22nd.

Probability theorems tell us that, from the relative frequency of all possible events, a particular outcome will occur some computed percentage of the time.

Gambling on the slot machines takes into account the probability that after X amount of non matching pulls, there is a pull with a big pay out. There are people who sit at slot machines all day waiting for that pay out. There are other people that watch people at slot machines. The watchers wait until the machine is vacated and jump on in hope of cashing in on the probability that the next pull is a win.

To use probability in slot machines, you have to understand the average payout of the casino. When casinos advertise that their slot machines pay out an average of 90 percent, the fine print they don't want you to read says that you lose 10 cents from each dollar you put into the machines in the long term. (In probability terms, this advertisement means that your expected winnings are minus 10 cents on every dollar you spend every time the money goes through the machines.)

Suppose you start with $100 and bet a dollar at a time, for example. After inserting all $100 into the slot, 100 pulls later you'll end up on average with $90, because you lose 10 percent of your money. If you run the $90 back through the machine, you'll end up with 90 percent of it back, which is 0.90 x 90 = $81. If you run that amount through in 81 pulls, you'll have $72.90 afterward (0.90 x 81 = 72.90). If you keep going for 44 rounds, on average, the money will be gone, unless you are lucky! Reference

...Understanding principles and values
It is very important that a person’s dignity is kept, so everyone has self-respect of themselves and that everyone has privacy at times when they need it as this makes them feel respected, independent and also in control. For example, even something simple like knocking on the door before entering the room is a sign that someone has privacy. This links to ‘Right to life’ because it is a concept that describes a belief that a...

...PROBABILITY DISTRIBUTION
In the world of statistics, we are introduced to the concept of probability. On page 146 of our text, it defines probability as "a value between zero and one, inclusive, describing the relative possibility (chance or likelihood) an event will occur" (Lind, 2012). When we think about how much this concept pops up within our daily lives, we might be shocked to find the results. Oftentimes, we do not think in...

...variable X is a weighted average of the possible values that the random variable can take. Unlike the sample mean of a group of observations, which gives each observation equal weight, the mean of a random variable weights each outcome xi according to its probability, pi. The mean also of a random variable provides the long-run average of the variable, or the expected average outcome over many observations.The common symbol for the mean (also known as the expected...

...QMT200
CHAPTER 3: PROBABILITY DISTRIBUTION
3.1
RANDOM VARIABLES AND PROBABILITY DISTRIBUTION
Random variables is a quantity resulting from an experiment that, by chance, can assume different values. Examples of random variables are the number of defective light bulbs produced during the week and the heights of the students is a class. Two types of random variables are discrete random variables and continuous random variable.
3.2...

...“Stakeholders are always competing for a larger slice of the value added fund and satisfying all
stakeholders is difficult when the business is competing in mature product markets”. Critically
examine this statement and use contrasting examples.
The idea of stakeholders shall in this paper be defined as a “person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization's actions, objectives, and...

...show little concern for pride in their own work. This leads the task element of leadership being measured in quantitative rather than qualitative terms. For example, people often ask themselves “Did I finish all my paperwork” rather than “How much value did I add by doing so?” . Journalists, for example, complain every day about their subjects (politicians) but they do not take personal responsibilities for their own actions. Whilst such complaints can be heard the world over,...

...the business achieving utmost success.
A number of issues in relation to management and the organisation have been raised, as a result of the agency and contingency theories. The agency theory was initially designed in order to assist in the understanding of the agent/principle relationship. Williamson (1985) identified opportunistic behaviour as a norm within organisations, stating that agency problems are more than likely to occur. He specified that managers often act...

...Value chain and globalization
Introduction
The process of corporate life is always a sea change and sometimes there are high tides and sometimes are quiet times. Day to day companies are faced with new challenges, whether it be a consolidated organization or a small business just starting, always emerging issues that affect their behavior and their performance. Owing to the consequences of an impressive development of technology and globalization that we are living in this...

1472 Words |
5 Pages

Share this Document

{"hostname":"studymode.com","essaysImgCdnUrl":"\/\/images-study.netdna-ssl.com\/pi\/","useDefaultThumbs":true,"defaultThumbImgs":["\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_1.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_2.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_3.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_4.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_5.png"],"thumb_default_size":"160x220","thumb_ac_size":"80x110","isPayOrJoin":false,"essayUpload":false,"site_id":1,"autoComplete":false,"isPremiumCountry":false,"userCountryCode":"GB","logPixelPath":"\/\/www.smhpix.com\/pixel.gif","tracking_url":"\/\/www.smhpix.com\/pixel.gif","cookies":{"unlimitedBanner":"off"},"essay":{"essayId":34026037,"categoryName":"Products","categoryParentId":"3","currentPage":1,"format":"text","pageMeta":{"text":{"startPage":1,"endPage":1,"pageRange":"1-1","totalPages":1}},"access":"premium","title":"Value of Understanding Probabilities","additionalIds":[27,262,17,52],"additional":["Sports \u0026 Recreation","Sports \u0026 Recreation\/Computer Video Games","Literature","Business \u0026 Economy\/Organizations"],"loadedPages":{"html":[],"text":[1]}},"user":null,"canonicalUrl":"http:\/\/www.studymode.com\/essays\/Value-Of-Understanding-Probabilities-423944.html","pagesPerLoad":50,"userType":"member_guest","ct":10,"ndocs":"1,500,000","pdocs":"6,000","cc":"10_PERCENT_1MO_AND_6MO","signUpUrl":"https:\/\/www.studymode.com\/signup\/","joinUrl":"https:\/\/www.studymode.com\/join","payPlanUrl":"\/checkout\/pay","upgradeUrl":"\/checkout\/upgrade","freeTrialUrl":"https:\/\/www.studymode.com\/signup\/?redirectUrl=https%3A%2F%2Fwww.studymode.com%2Fcheckout%2Fpay%2Ffree-trial\u0026bypassPaymentPage=1","showModal":"get-access","showModalUrl":"https:\/\/www.studymode.com\/signup\/?redirectUrl=https%3A%2F%2Fwww.studymode.com%2Fjoin","joinFreeUrl":"\/essays\/?newuser=1","siteId":1,"facebook":{"clientId":"306058689489023","version":"v2.8","language":"en_US"},"analytics":{"googleId":"UA-32718321-1"}}