Question

12. The probability that the Dow Jones stock index will close above 18000 at the end of the
year is an example of
(a) classical probability.
(b) subjective probability.
(c) independent probability.
(d) priory probability.

13. The probability calculated based on observing a process (or experiment) n times and
counting the number of times an event of interest (say, X) occurs is known as
(a) classical probability.
(b) marginal probability.
(c) conditional probability.
(d) relative frequency approach of probability.

14. The probability that a person can get infected with a rare type of blood disorder is very
small. Suppose that a blood test performed on 10,000 people showed that two persons
tested positive that is, a 0.02% chance of getting this type of blood disorder. This
probability measure was calculated using
(a) conditional probability approach.
(b) marginal probability.
(c) relative frequency approach
(d) classical approach.

Answer 1

12.(b) Subjective probability.
13. (a) classical probability.
14. (c) relative frequency approach