In financial modelling and investment appraisal, Probability Analysis is a technique used by analysts to capture the effects of different future occurrences and events on the financial forecast of a business. The probability analysis technique offers scope for analysts to combine the normal trends and deviations from known trends by allocating probabilities of each case occurring. Through the probability analysis, economic benefits and cash flows inculcate real life dynamics which result in more robust forecast and analysis of the business. The application of probability analysis enables business valuation analysts to mimic real life situations where most variables are uncertain or difficult to estimate with a high degree of accuracy. When applying probability analysis, business valuators assume a standard normal distribution. Once the base financial forecast is developed, a probability analysis, informed by detailed assessment of internal and external dynamics of the business, may suggest a 50% probability that the forecast will be achieved, a 30% probability that the forecast will be 10% lower and a 20% probability that the forecast will be 10% lower. A sum of these probabilities, even though will result in a completely different cash flow from the original cash flow, would form the stream the business valuator will rely on to estimate the fair market value of the business. Business valuation analysts, quite often, combine probability analysis with scenario analysis to model economic benefits of businesses.