Probability Is Used in Business. Term Paper

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), distribution function allows to find a range of data for which probability of the event to occur is the highest, which allows to adjust business and working schedule to the distribution particularities.

Statistical devices such as probability distributions are used in analysis of employees' performance, sales analysis and marketing researches, as they allow to set the most optimal conditions for successful business performance and restructure business in accordance with probability distribution performance indicators, which allows to minimize business risks, shorten spendings and change business working atmosphere for better.

3. Conduct a literature and internet search and write a paper of between 200-300 words describing how business uses normal distribution. In your paper, discuss how a business person can benefit from using normal distribution.

Normal distribution has a number of applications in different areas of business. Math gives the following definition of normal distribution: "normal distribution (a bell-shaped curve) represents a theoretical frequency distribution of measurements. In a normal distribution, scores are concentrated near the mean and decrease in frequency as the distance from the mean increases."

In business administration it's commonly agreed today that portfolio theory assumes that returns of a portfolio with diversified assets are in agreement with normal distribution law. In such areas of management as operations management, observations show that process variations also follow normal distribution law, which explains distribution of a random variable if data set's range is quite big. it's also agreed in human resource management that performance of employees is normally distributed.

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Normal distribution of processed data of surveys or sales data can assist businessmen in choosing right potential customers for their sales and improve marketing polices which will correspond with requirements of potential customers. In service sector, normal distribution of visitors in the restaurants, automobile repairs or supermarkets can assist human resource and project managers in distributing working load during working day so that the number of serviced clients is the biggest and so that business gives the biggest return.

In order to apply probability theory and distribution methods to one's business, it's important to collect series of data which would provide the most extensive picture of business's performance, so that results of statistical processing and distribution qualities are close to the real situation.

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