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Decisions with Discrete Random Variables: Part 1 (with Excel)

In this video, Adrian discusses a business problem where a project decision must be made but outcomes are uncertain.

To Lease or Not To Lease

In this video we started applying what we have learned so far for a real business problem.
This is an example, but it isn’t a far-fetched one. You can imagine how similar scenarios of choosing between two projects with uncertain outcomes might arise in businesses. To assess the two projects, we are computing the expectation, variance and standard deviation of cash flows.

Let’s discuss

What other scenarios are you contemplating right now that you could use your Excel skills to help decide? Feel free to share with your fellow learners in the comments!
In the next video, Adrian will discuss how we use our calculated figures to determine which project is more attractive.
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Data Analytics for Decision Making: An Introduction to Using Excel

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