Probability and Statistics

Running head: PROBABILITY AND STATISTICS
Probability and Statistics
Name of the Student:
Name of the University:
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1PROBABILITY AND STATISTICS
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
1.a. Identification of Problem.................................................................................................2
1.b. The alternatives and the states of nature.........................................................................2
2.a. The decision table............................................................................................................3
2.b. Potential payoffs in each situation..................................................................................3
2.c. Decision Strategies and Determination...........................................................................3
2.d Reason and result of decision process..............................................................................4
Conclusion..................................................................................................................................4

2PROBABILITY AND STATISTICS
Introduction
Organizations and business are operated by mainly by making proper decisions in
specific situations. The owner or the manager executes decisions by making plans, organizing
and leading the team. The quality of the decision decides the success and growth of the
business. Decision making process is a non-theoretical and experimental method to make
decision (Ferrell & Fraedrich, 2015). A proper decision is made by following the below listed
steps:
1. Identification of the problem or the objective.
2. Searching the alternatives.
3. Giving weigh the alternative.
4. Selection of best alternative.
5. Implementation of the choice.
6. Evaluation of the results and, if necessary, repeating the process again.
Discussion
I am a business owner dealing with a crucial decision that could be enough lucrative. I
am the business owner for my ice-cream parlor. I have a number of ice-cream shops in the
town and neighboring town.
1.a. Identification of Problem
In this situation, the business needs to be grown to the other towns to deliver the
quality and unique test of the ice-cream.
1.b. The alternatives and the states of nature
There are three considerable alternatives that are listed below:
1. Expand the business with 3 shops in the new town.