Question

Classify the statement as an example of classical probability, empirical probability, or subjective probability. A financial analyst predicts that the chance of a stock going up over the next month is 0.75. Choose the correct answer below. A. Subjective probability because the probability results from an estimate. B. Empirical probability because the probability is based on observations obtained from a probability experiment. C. Classical probability because each outcome in the sample space is equally likely. D. Subjective probability because each outcome in the sample space is equally likely. E. Classical probability because the probability is based on observations obtained from a probability experiment. F. Empirical probability because the probability results from an estimate.

Answer 1

To solve the question, we need to understand each of the concept given.

Hence

Classical probability is a simple form of probability that has equal odds of something happening.

Empirical probability also known as experimental probability, refers to a probability that is based on historical data, uses the number of occurrences of an outcome within a sample set as a basis for determining the probability of that outcome.

Subjective probability is a type of probability derived from an individual's personal judgment or own experience about whether a specific outcome is likely to occur. it is anyone's opion about the event.

Hence

The prediction of a financial analyst is based on his own analysis, opion and estimations, so it a Surjective probability.

Answer:

Subjective probability because the probability results from an estimate.