Classify the statement as an example of classical probability, empirical probabi
ID: 2923295 • Letter: C
Question
Classify the statement as an example of classical probability, empirical probability, or subjective probability. Explain your reasoning. A financial analyst predicts that the chance of a stock going up over the next month is 0.75 Choose the correct answer below. O A. Empirical probability because the probability results from an estimate. O B. Classical probability because each outcome in the sample space is equally likely. O C. Empirical probability because the probability is based on observations obtained from a probability experiment. O D. Subjective probability because the probability results from an estimate. O E. Subjective probability because each outcome in the sample space is equally likely. O F. Classical probability because the probability is based on observations obtained from a probability experiment.Explanation / Answer
Ans:
Subjective probability because the probability results from an estimate .
Option D is correct.
Subjective probability is a probability derived from an individual's personal judgment about whether a specific outcome is likely to occur. It contains no formal calculations and only reflects the subject's opinions and past experience. Subjective probabilities differ from person to person, and they contains a high degree of personal bias.