Subjective probability, Mathematics

Assignment Help:

Subjective Probability

Probability may be determined by a personal statement of how likely an outcome is in a single trial or repetition of the same experiment.

Since subjective probabilities are based on personal judgement, they are peculiar to the individual making the decision. The probability statement depends upon the individual's experience and his familiarity with the facts of the case. Two decision makers with the same amount of information would make different subjective probability estimates of the occurrence of a particular event.

Example 

An expert analyst of share prices may give his judgement that the price of ACC shares has a 20% probability of increase i.e., by Rs.500 or more in the next two months, a 60% probability of increase i.e., by less than Rs.500 in the next two months and a 20% probability of remaining unchanged or registering a slight fall.

 


Related Discussions:- Subjective probability

Explain adding and subtracting in scientific notation, Explain Adding and S...

Explain Adding and Subtracting in Scientific Notation? To add or subtract numbers in scientific notation, the numbers must be expressed so that they have the same exponent.

Determine probability , You are going on a road trip and you buy snack pack...

You are going on a road trip and you buy snack packs and three different kind of beverages.  You buy 7 Cokes, 5 Pepsis and 4 Dr. Peppers.  You pull out two beverages at random.  An

Compute standard and variance deviation, A firm is manufacturing 45,000 uni...

A firm is manufacturing 45,000 units of nuts. The probability of having a defective nut is 0.15 Compute the given i. The expected no. of defective nuts ii. The standard an

They preferred comedies, A survey was done where a random sample of people ...

A survey was done where a random sample of people 18 and over were asked if they preferred comedies, dramas, or neither. The information gathered was broken down by age group and t

Variance, Variance Consider the example of investment opportunities. Th...

Variance Consider the example of investment opportunities. The expected gains were Rs.114 and Rs.81 respectively. The fact is that an investor also looks at the dispersion befo

Rlc circuit, State clearly that the current in an RLC circuit with an AC so...

State clearly that the current in an RLC circuit with an AC source with and without the use of complex variables

Abstract Algebra, let R be a (noncommutative) ring. Given that a,b and a+b ...

let R be a (noncommutative) ring. Given that a,b and a+b ? R are all units, prove that a^(-1)+b^(-1) is a unit

Linear Equations, Tommy has a Nexus 4 that charges poorly. He placed his ph...

Tommy has a Nexus 4 that charges poorly. He placed his phone to charge,after 20 minutes the phone was 27% and after 85 minutes the phone was at 66%. Find how many percentage the p

Fermat''s little theorem, 1. How many closed necklaces of length 7 can be m...

1. How many closed necklaces of length 7 can be made with 3 colors? (notice that 7 is a prime) 2. How many closed necklaces of length 10 can be made with 3 colors (this is di erent

solve the game by linear programming, UA and DU are preparing for the NCAA...

UA and DU are preparing for the NCAA basketball game championship. They are setting up their strategies for the championship game. Assessing the strength of their "benches", each c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd