Question 2 – Chapter 5 Which of the approaches to assigning probability made the most sense to you? Which was the most difficult to understand? Discuss and explain why.

Approaches to Assigning Probability

The classical approach to assigning probability made the most sense and the most difficult to understand was the subjective approach. The classical approach of forming probability to events is mainly used when the possible outcomes are known before hand and all the outcomes have an equal likelihood of occurrence  (Lind, Marchal, & Wathen, 2012). The use of a six-sided die proved useful in understanding all concept about the classical method. Subjective approach is used when the possible outcomes are not known in advance and no previous statistical data is available to use. This approach is based on opinion and predictions and the degree of belief, opinion or prediction on the probability of an event determines the probability.

 

Reference

Lind, D., Marchal, W., & Wathen, S. (2012). Basic Statistics for Business and Economics. Pennsylvania: McGraw-Hill Higher Education.

 

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