Summary

[Page 504 ( continued )]

The field of probability and statistics is quite large and complex, and it contains much more than has been presented in this chapter. This chapter presented the basic principles and fundamentals of probability. The primary purpose of this brief overview was to prepare the reader for other material in the book. The topics of decision analysis (Chapter 12), simulation (Chapter 14), probabilistic inventory models (Chapter 16), and, to a certain extent, project management (Chapter 8) are probabilistic in nature and require an understanding of the fundamentals of probability.