BUSINESS ANALYTICS FORECASTING

The sample space is the collection of all possible outcomes of an experiment.

... is the likelihood that an outcome occurs

Three major categories of forecasting approaches are ...

Early 1988 – oil price was about $22 a barrelMid-1988 – oil price dropped to $11 a barrel , what is the drop perscentage

The probability of the intersection of two events is called

Business Analysts may choose from a wide range of forecasting techniques to support decision making.

Relative frequency definition refers to probabilities that are not based on empirical data

Managers alwars require good forecasts of future business events.

Subjective definition refers to probabilities that are based on judgment and experience.

Classical definition refers to probabilities that can be deduced from theoretical arguments