Question

What are the possible outcomes that a probability can be assigned to? Explain how probability distributions are used in financial decision making. How does probability apply to healthcare financial management?

Answer 1

Above is an exam9le of health care industry probability using problem.

How it useful in formulating financial decisions

Suppose an doctorlaces an target for earning an 2000 per day

So he works for 10 hrs per day

He assumes that each patitent takes 1 hour so he should charge for 200

But some may taken more than one hour or even less but doctor will not be able to idwntify when such persons wil come to hospital

So he draws the lottery based on that he find probability distribution

And seeks that 2 hour is leasure since no patient is coming so he needs to increase his fees

To get target,.... k

Like wise probility is very useful for financial decisions ....