MN 1683 - Business Probability, Markov Chains, and Gaming Theory

Course Description

Gaming theory is a way to mathematically express ways for people or businesses to arrive at their best strategy. To get there, we will first cover basic probability with applications to business, especially with the concept of expected value. Next, Markov chains look at a sequence of events based on probability. Lastly, we will use basic game theory to model strategic interaction between two parties like Walmart versus Target or Republicans versus Democrats. Throughout we will apply the theory to a variety of applications including analyzing rental income, cost estimating probabilities, screening job applications, determining voting patterns, running medical tests, optimal testing for product defects, and predicting consumer preferences.