Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS

Share on StockTwits

Do we use maths in decision-making?


July 20, 2022 ( Newswire)

The Role of Mathematics in Decision-Making

Math plays a large role in business and decision-making, in particular, mathematical models. These models are beneficial in two main ways, they help make decisions easier to see and quantify, and they also make the decisions much easier than you first thought.

Whether it be mathematics and gambling, math and sport or business, it is part of making decisions that can lead to immense success when done correctly.

Mathematical Models

In simple terms, a mathematical model is a process of sorts, a + b = c. In terms of business, a mathematical model can be something such as Revenue - Costs = Profit. While this is a very simple example, it is a way that math is used very regularly in business.

You can also extend these models into different aspects, such as how much product one of your stores sells and how they need more than another branch. These models are used to get clear and accurate answers to everyday problems, something that will be discussed later.

Removes Bias

There are multiple benefits to using mathematical models in business, the first being that they remove bias. Many people use "going with your gut" as a reason they make certain decisions. This isn't a movie; you need facts and stats to support decisions, not a hunch.

These models remove the guesswork from the equation, and instead of having to come to a decision you "think" is right, you have stats and figures that show the correct decision.


Mathematical models are incredibly efficient, especially when it comes to getting to an answer fast. Once again, by removing any guesswork, you are able to quickly work through relevant numbers and problems and come to a solution.

Computer programs that run these models can process enormous amounts of data at a time, and without human interference and possibly an error, your data will be accurate.

Clear and Accurate

As mentioned already, mathematical models offer clear, accurate, and repeatable results. There are no gray areas, meaning the answer is the answer, whether you like it or not. While this may be difficult for some, it does offer you a straightforward path towards a solution.

When it comes to making decisions, especially ones that are life-changing or involve a lot of money, for example, the last thing you want is for the information you are using to be clouded or inaccurate in any way.


Optimization in business and decision-making is needed to save time and money. Mathematical models allow processes to run at optimum efficiencies, such as electricity use for a generator compared to how much you need daily.

Without these optimizations, many processes will not only take longer than they need to but can cost more and more money the longer they go unaddressed.

Risk Analysis

No matter who you are, you have a level of risk, a line you aren't willing to cross no matter what the reward may be. The biggest problem with risk is that it is simultaneously easy to spot and difficult to judge.

Using mathematical models, you are not only able to analyze risk but also figure out if it is worth taking in the short and long-term. There is no need to jump off the edge blind when it is straightforward to figure out what you are getting yourself into.

Strategic Decisions

There are two main areas of business where math is beneficial; strategic and tactical decision making. A strategic decision is something that will cause lasting changes to a company, such as opening more outlets or buying out a competitor.

These decisions require intensive modeling, as there are often large sums of money involved, as well as needing to know how to split assets, your workforce, etc.

Tactical Decisions

A tactical decision is something that will affect your business immediately, such as upping or lowering the price of an item. You will need to know your costs, how to reduce costs, how to make the production process cheaper, and so on.

You can use mathematical modeling to figure out the financial implications, how long changes will take, and whether or not the changes will have an impact on sales or client spending.

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions.. More disclaimer info: This article is a third party guest post published content and not the content of

Please read privacy policy: