## February 02, 2012

### How to Make a More Profitable Decision Using Mathematics

There are numerous mathematical ideas and concepts that we unconsciously use in our daily lives to make our business decisions more effective and profitable. But it is worth an effort if you can consciously recognize these mathematical concepts and make them a part of our decision-making.

Break - Even Point

Break - Even Point Analysis is a very significant way of interpreting our business decisions and optimum levels of outcomes. Mathematical curves can be used to determine the break - even point in terms of quantity as well as in terms of value. Such analysis can help us make better decisions.

Opportunity Cost

Mathematics can help us compare the cost of two products and thus enable us to make better decisions.

Probability

In mathematics, this is the most important field of study. Probability is a scientific term which adds rationality to our brainstorming sessions. Mathematical probability can enable us to forecast the future conditions using concrete sets of available mathematical data.

Percentages and Ratios

Mathematical ratios can enable us to make predictions and thus ensure that our malfunctioning departments are closely supervised.