In your own understanding, explain the statistical models used in operations decision making. Please base on the information below. Most business decisions are made with only limited or incomplete information. Statistical theory can help to control error associated with the amount of data used in the decision process. Decision makers utilize probabilities, which are the most basic measures of uncertainty. Probabilities attach a quantitative value (between 0 and 1) to the occurrence of an event. Events are called independent if the occurrence of one in no way affects any other one. Mutually exclusive events automatically preclude each other, such as classifying an item as good or defective. Following are the rules for applying probabilities. Complement P(A) = 1 - P( A ) Multiplication P (A and B) = P(A) P(B/A) = P(A) P(B) (if independent) Addition P (A or B) = P(A) + P(B) (if mutually exclusive) P A( and B) P A PB A( ) (/ ) Bayes' rule P (A/B) = PB( ) = P A PB A( ) ( /) + P A PB A() (/ ) There are three types of probabilities. Namely classical, empirical, and subjective probabilities. (a) Classical probabilities are based upon equally likely outcomes that can be calculated prior to an event on the basis of mathematical logic. (b) Empirical probabilities are based upon observed data and express the relative frequency of an event in the long run. (c) Subjective probabilities are based upon personal experience or judgment and are sometimes used to analyse one-time occurrences