Learn how an understanding of low-probability events can compel you to prepare for dramatic changes and circumstances in the future.
- Are you afraid of flying?…- In a commercial airplane, no, I'm as calm…as a summer's morning when I fly.…- Now, you know, of course,…that some people are terrified of flying.…- Absolutely, this is a classic example…of the difficulty people have…in understanding low-probability events.…- Exactly, for example, in 2016,…there were zero people killed in commercial…airline crashes in the United States…and zero in 2015, and zero in 2014.…- A 2013 study found that that fatality rate…for U.S. air travel was 0.07 fatalities…for every one billion passenger miles flown.…
Now, note, with no recent airliner fatalities,…that rate has decreased, but we'll use it for comparison.…- That means that if the average commercial air trip…is 500 miles, there is one fatality…for every 29,000,000 trips.…- By comparison, the same 2013 study found…that the fatality rate for U.S. travel…in cars and light trucks was 7.3 fatalities…for every one billion passenger miles driven.…- That means that if the average driving trip is 30 miles,…there is one fatality for every 4.5 million trips.…
In this course, join accounting professors Jim and Kay Stice as they help you discover how to leverage the power of numbers to approach businesses problems and make everyday decisions. They explore the power of ratios and percentages, how to monitor and evaluate your budget, how to forecast the timing and amount of a business loan, and much more.
- The power of ratios and percentages
- Growth rates, rule of 72, and extrapolation
- Financial ratios to determine unpaid inventory
- How to convert to percentages
- Variance and the concept of risk
- Numerical planning and everyday decisions
- Creating, monitoring, and evaluating your budget
- Forecasting the timing and amount of a business loan
- The power of compound interest
- Loan payments and interest rates