Basic Concepts of Probability
Chapter 4
Q: What is Probability?
A: Probability is a measure of how likely it is that some event will occur
or not occur.
DEF. Probability is the branch of mathematics that studies the
likelihood or chance that a given event
Assumption Table
Unit Sales Year 1
Unit Sales Price
Sales Growth Rate
Cost of Goods Sold as % of Price
Operating Expense Growth Rate
Income Tax Rate
200
$110
115%
60%
105%
50%
Income/Expense Category Year 1
Year 2
Year 3
Year 4
Year 5
Revenue
22,000
25300
Assumption Table
Unit Sales Year 1
Unit Sales Price
Sales Growth Rate
Cost of Goods Sold as % of Price
Operating Expense Growth Rate
Income Tax Rate
200
$110
115%
60%
105%
50%
Income/Expense Category Year 1
Year 2
Revenue
22,000
Cost of Sales
13,200
Gross
Assumption Table
Unit Sales Year 1
Unit Sales Price
Sales Growth Rate
Cost of Goods Sold as % of Price
Operating Expense Growth Rate
Income Tax Rate
200
$110
115%
60%
105%
50%
Income/Expense Category Year 1
Year 2
Revenue
22,000
Cost of Sales
13,200
Gross
Arman Ibric, Andrew Biglin, Tara Devine, Maurice Grahm, Anton
Alternative Distributor for SSI
(Case 3)
1. Define the problem
Sugar Sweets Inc. (SSI) was looking to increase market coverage and
the sales volume on its candy and snack products. But the comp
NORMAL DISTRIBUTION
Q: What is meant by the term Normal Distribution?
A: A Normal Distribution is a curve having 4 properties:
[1] It is perfectly symmetric.
[2] Its Mean = Median = Mode.
[3] It has a single peak in the center.
[4] The total area under th
DISCRETE PROBABILITY DISTRIBUTIONS
AND THE BINOMIAL DISTRIBUTION
AND THE POISSON DISTRIBUTION
Q: What is a random variable?
A: A random variable is a numerical value we get
from a probability experiment (e.g. rolling a
pair of dice, counting defective pro